Phase 1 · Generation
In force since 4 December 2021
You must issue and keep invoices electronically, from software that cannot edit or delete an invoice without leaving a trace. Simplified (B2C) invoices need a QR code.
E-Invoicing / Free Tier
Free ZATCA E-Invoicing Software for Small Businesses in Saudi Arabia
Free ZATCA-compliant e-invoicing for small businesses. Issue bilingual invoices with QR codes from any device, and switch on Phase 2 when your wave arrives.
Is e-invoicing mandatory for small businesses in Saudi Arabia?
Yes. ZATCA's e-invoicing (Fatoorah) rules apply to every business registered for VAT in Saudi Arabia. Small businesses are not exempt.
The requirements roll out in two phases
Phase 2 · Integration
Rolling out in waves
Connect your software to ZATCA's Fatoora platform. B2B standard invoices are cleared before sending; B2C simplified invoices are reported within 24 hours.
Handwritten invoices, Word or Excel templates, and PDFs you can edit afterwards don't meet the rules, even for a one-person business.
Who Qualifies
ZATCA mandates apply to every VAT-registered business
Whether you run a single restaurant or a small retail shop, if you are VAT-registered in Saudi Arabia, you must issue e-invoices. Business size does not exempt you. PosBytz makes compliance accessible with a free tier for small businesses.
- All VAT-registered businesses in KSA must comply
- No minimum revenue threshold for Phase 1
- Phase 2 rollout is based on revenue waves
- Free tier covers essential e-invoicing needs
Free Tier
What is Included in Our Free E-Invoicing Software
Our e-invoicing software free plan includes ZATCA Phase 1 compliant invoice generation, QR codes, bilingual formatting, and basic POS functionality. Upgrade when you need multi-outlet management, advanced reporting, or accounting features.
- ZATCA Phase 1 compliant invoice generation
- QR code and UUID on every invoice
- Arabic + English bilingual invoices
- Basic POS billing and product management
Simple Setup
Get compliant in minutes — no technical skills needed
Register, add your business details and TIN, import your products, and start issuing compliant invoices. PosBytz handles the formatting, QR codes, and validation automatically.
- Sign up and enter your VAT registration number
- Import products via CSV or add manually
- Start issuing compliant invoices immediately
- No IT team or developer required
Upgrade Path
Scale when your business grows
Start free and upgrade when you need Phase 2 Fatoorah integration, multi-outlet management, inventory tracking, accounting, or CRM. No data migration — everything carries over.
- Phase 2 Fatoorah integration on paid plans
- Multi-outlet and multi-user management
- Full accounting, inventory, and CRM
- No data loss when upgrading — everything carries over
ZATCA Phase 1 vs Phase 2: which one do you need, and when?
| Phase 1 – Generation | Phase 2 – Integration | |
|---|---|---|
| Applies to | All VAT-registered businesses | Businesses in a ZATCA wave (by revenue) |
| Since / deadline | 4 December 2021 | Wave by wave; see below |
| What your software must do | Issue electronic invoices; QR code on simplified invoices; no editing or deleting of issued invoices | Everything in Phase 1, plus XML (UBL 2.1) invoices, cryptographic stamp, invoice hash, and connection to Fatoora |
| B2B standard invoices | Issued electronically | Cleared by ZATCA before you send them |
| B2C simplified invoices | Issued electronically with QR code | Reported to ZATCA within 24 hours |
| PosBytz plan | Free plan | Paid plans |
The latest Phase 2 waves
| Wave | Your VAT-subject revenue exceeded | In any of | Integrate with Fatoora by |
|---|---|---|---|
| Wave 24 | SAR 375,000 | The revenue years ZATCA set for the wave | 30 June 2026 |
| Wave 25 | SAR 187,500 | 2022, 2023, 2024 or 2025 | 1 February 2027 |
What this means for you: Wave 25 brings almost every VAT-registered business into Phase 2 by 1 February 2027. The free plan covers you for Phase 1 today. If your revenue crossed SAR 187,500 in any year from 2022 to 2025, plan your switch to Phase 2 before your deadline. ZATCA also notifies businesses in each wave directly.
Source: ZATCA wave announcements, summarised by KPMG and Grant Thornton. Checked October 2026.
What's included in the free plan, and what's paid
Our free e-invoicing software gives you everything you need to issue Phase 1 compliant invoices and run a small counter. Upgrade when you need Fatoora integration, more outlets or a full back office.
| Feature | Free plan | Paid plans |
|---|---|---|
| ZATCA Phase 1 compliant tax invoices (simplified and standard) | Yes | Yes |
| ZATCA QR code on every invoice | Yes | Yes |
| Arabic + English bilingual invoices | Yes | Yes |
| Credit and debit notes | Yes | Yes |
| Basic POS billing and product list | Yes | Yes |
| Share invoices by WhatsApp, email or SMS | Yes | Yes |
| Cloud storage and backup of every invoice | Yes | Yes |
| Phase 2: Fatoora integration (clearance and reporting) | No | Yes |
| Multiple outlets and users | No | Yes |
| Inventory, accounting, CRM, HR and payroll | No | Yes |
| Advanced reports | No | Yes |
A free ZATCA-compliant POS and e-invoicing in one app
Most free invoice tools only make invoices. PosBytz is a ZATCA compliant POS, so the invoice is created when you ring up the sale. Your cashier doesn't have to type it in again later.
01
ZATCA QR codes
Generated automatically on every invoice in the format ZATCA specifies.
02
Arabic and English invoices
Both languages on every bill, and printable on receipt or A4 printers.
03
Works on any device
Android, iPad, Windows or any browser. No special hardware.
04
WhatsApp invoices
Send the invoice to your customer by WhatsApp, email or SMS.
05
Built-in validation
Missing VAT number, buyer details or other required fields are flagged before you issue the invoice.
06
Secure cloud archive
Invoices are stored and backed up automatically, ready for a ZATCA audit.
Get started in five steps
How to start issuing ZATCA e-invoices for free
Step 01
Create your free account.
Sign up with your email or phone number. No credit card is needed.
Step 02
Add your business details.
Enter your business name in Arabic and English, address, commercial registration (CR) and 15-digit VAT number.
Step 03
Add your products or services.
Import them from Excel/CSV, or add them one by one with prices and VAT rates.
Step 04
Issue your first invoice.
Ring up a sale. PosBytz adds the QR code, the bilingual layout and the VAT breakdown automatically.
Step 05
Share or print.
Print on a receipt printer, or send by WhatsApp or email.
Your upgrade path
Grow into Phase 2 without switching software
When your wave arrives, upgrade in the same account:
See ZATCA Phase 2 e-invoicing- 1Onboard to Fatoora and get your cryptographic stamp (CSID).
- 2B2B invoices are cleared, and B2C invoices are reported automatically.
- 3Add outlets, users, inventory, accounting, CRM and payroll as you grow.
- 4Keep every invoice, product and customer record. No migration needed.
How to choose free e-invoicing software in Saudi Arabia
Before you pick any free tool, check five things:
Since switching to PosBytz, our order accuracy improved by 40% and kitchen wait times dropped by 25%. The multi-outlet management is seamless — I can monitor all three branches from my phone.
Ahmed Al-Rashidi
Operations Manager · Sultan Restaurant
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FAQ
Free E-Invoicing FAQ
Answer 01
Is there free ZATCA e-invoicing software in Saudi Arabia?
Yes. PosBytz has a free plan for small businesses. It issues ZATCA Phase 1 compliant tax invoices with QR codes in Arabic and English, and includes basic POS billing. Phase 2 (Fatoora integration) is available on paid plans.
Stay compliant with ZATCA e-invoicing
Generate compliant invoices from your POS. Phase 1 and Phase 2 ready.