How to Generate e-Invoices Instantly with ClearTax in KSA?

Saudi Arabia’s Zakat, Tax, and Customs Authority (ZATCA) has revolutionized tax compliance through mandatory e-invoicing (FATOORAH). With Phase 2 in full swing and Wave 20 now requiring VAT-registered businesses with turnover exceeding SAR 1.5 million to integrate with the Fatoora Portal by 31st October 2025, compliance is no longer optional. Delays can lead to penalties, operational disruptions, and reputational risks.

This guide explains how ClearTax, a ZATCA-approved e-invoicing solution provider, enables businesses to generate compliant e-invoices instantly while ensuring seamless integration and scalability.

Understanding e-Invoicing in KSA

E-invoicing replaces paper invoices with structured digital formats (XML/PDF-A3) containing mandatory fields like QR codes, cryptographic stamps, and UUIDs. All invoices must be generated, stored, and reported through ZATCA-compliant systems.

Phases & Waves

• Phase 1 (Dec 2021): Mandated electronic invoice generation without ZATCA integration.
• Phase 2 (Jan 2023): Requires real-time integration with ZATCA’s Fatoorah Portal, rolled out in waves based on turnover.
• Recent Wave 20 (Oct 2025): Applies to businesses with SAR 1.5 million+ turnover in 2022/2023.

Key Requirements for Phase 2

• Integration via APIs.
• UUID, cryptographic stamp, and sequential numbering for invoices.
• Real-time clearance (B2B) or 24-hour reporting (B2C).
• Data residency in KSA.

How ClearTax Simplifies e-Invoicing in KSA?

ClearTax, trusted by 400+ enterprises in KSA, offers a ZATCA-approved cloud platform designed for instant, error-free e-invoicing. Here’s how it works:

Seamless Integration

• Connects with 30+ ERPs (SAP, Oracle), 15+ POS systems, and custom solutions.
• APIs auto-generate UUID, invoice hash, and cryptographic stamps.
• Offline solutions for B2C invoices allow QR code generation without internet, with 24-hour ZATCA reporting.

Compliance Automation

• 150+ smart validations ensure adherence to ZATCA rules.
• Generates XML/PDF-A3 invoices with embedded QR codes and stamps.
• Auto-retries failed submissions and bulk upload capabilities.

Scalable Infrastructure

• Processes 10,000+ invoices/second with <300ms latency.
• Hosted on KSA-based servers for data residency compliance.

Security & Support

• ISO 27001, SOC-2 certified with role-based access and TLS 1.2 encryption.
• 24/7 support including ticketing, AI chatbots, and dedicated account managers.

Steps to Generate e-Invoices Instantly with ClearTax

Step 1: Integration Setup

1. Connect Your ERP/POS: Ensure your ERP/POS system is compatible with ClearTax's API-driven integration.
2. Device Registration with ZATCA: Register all invoicing devices through ClearTax’s automated device registration utility.
3. Configure Business Preferences: Set invoice templates, tax rates, and compliance parameters per ZATCA regulations.

Step 2: Invoice Generation

For Standard Invoices (B2B Transactions)

1. Data Submission: Your ERP sends invoice details to ClearTax via API.
2. Validation & Compliance Checks: ClearTax verifies VAT numbers, applies cryptographic stamps, and ensures all mandatory fields are filled.
3. Real-Time Clearance with ZATCA: The invoice is submitted to ZATCA for immediate validation and approval.
4. Invoice Generation: The cleared invoice is generated in PDF/A-3 format with embedded XML and QR code.
5. Sharing & Archival: The invoice is sent to the buyer and stored in compliance with ZATCA’s six-year archival mandate.

For Simplified Invoices (B2C Transactions)

1. Invoice Creation in Offline Mode: Invoices are generated at the POS level even without an internet connection.
2. Digital Signing & QR Code Addition: The invoice is digitally signed and a QR code is attached.
3. 24-Hour Reporting to ZATCA: Once the internet is available, the invoice is automatically submitted to ZATCA within 24 hours.
4. Reconciliation & Validation: ClearTax ensures compliance by validating the invoice against ZATCA’s requirements.

Step 3: Validation & Submission

1. Error Detection & Correction: ClearTax’s AI-driven validation engine flags any discrepancies and suggests fixes.
2. Re-submission for Failed Invoices: Auto-retries ensure that errors are resolved quickly, reducing manual intervention.

Step 4: Archival & Reporting

1. Secure Cloud Storage: All invoices are stored for six years per ZATCA’s compliance guidelines.
2. Advanced Reporting & Dashboards: Businesses can access real-time reports, track invoice success rates, and monitor compliance metrics.
3. Audit-Ready Records: Easily retrieve historical invoices for tax audits and reconciliations.

Why Choose ClearTax?

• Proven Expertise: 99%+ success rate with ZATCA; 1,400+ integrations completed.
• AI-Driven Efficiency: Auto-compute tax amounts, bulk processing, and smart error resolution.
• Future-Ready: Regular updates align with ZATCA SDK changes (e.g., QR code enhancements).
• Cost Optimization: Reduces manual effort by 70% and ensures zero non-compliance penalties.

Conclusion

With ZATCA’s Wave 20 deadline approaching, businesses must adopt agile e-invoicing solutions. ClearTax’s blend of AI-powered automation, seamless integrations, and enterprise-grade security ensures 100% compliance while optimizing workflows.

From real-time B2B clearance to offline B2C capabilities, ClearTax is your partner in navigating Saudi Arabia’s digital tax transformation.