The Saudi e-invoice Phase 2 regulation is now fully in effect, marking a critical shift for all restaurants and food businesses in the Kingdom. Mandated by ZATCA (Zakat, Tax and Customs Authority), this phase requires restaurants to adopt real-time digital invoicing systems that communicate directly with government servers. Compliance is not only mandatory but also essential to avoid penalties, maintain operations, and align with national tax reforms under Vision 2030.
Understanding ZATCA Compliance for Restaurants
ZATCA’s e-invoicing initiative, known as FATOORAH, was launched in two phases:
- Phase One (Generation Phase) – Effective from December 4, 2021
Restaurants were required to issue e-invoices instead of manual or handwritten ones. The invoice format had to include mandatory fields like buyer VAT, QR code, timestamp, and line-item VAT breakdown. - Phase Two (Integration Phase) – Mandatory from January 1, 2023 for selected taxpayers
From 2025 onward, ZATCA is expanding Phase Two to all restaurants, including small and medium enterprises. This phase requires POS systems to be directly integrated with ZATCA servers to transmit and report invoices in real-time.
Choosing a ZATCA-Approved POS System
A key element of ZATCA compliance is selecting a certified point-of-sale (POS) solution that supports:
- End-to-end e-invoice lifecycle (XML, UUID, stamping, QR)
- Real-time ZATCA API communication
- Secure device registration and control unit integration
- Arabic/English dual-language invoice templates
- Customer-friendly receipts with tax breakdowns
Why Tijarah360 POS Is Fully ZATCA-Compliant
Tijarah360 is purpose-built for Saudi restaurants and food businesses. It provides:
- Certified XML invoice generation in both simplified and standard formats
- Instant invoice transmission through ZATCA-compliant APIs
- Device registration and CSID encryption
- Real-time compliance dashboards and reporting
- Built-in support for both dine-in and delivery invoicing workflows
Step-by-Step Guide to Making Your Restaurant ZATCA-Compliant
Step 1: Assess Your Current POS System
Ensure your current POS can:
- Generate structured XML invoices
- Integrate with ZATCA APIs
- Support dynamic tax computation and QR code display
If it cannot, upgrade to a certified system like Tijarah360.
Step 2: Register Your Device with ZATCA
Each POS terminal must be:
- Registered on ZATCA’s portal
- Issued a Cryptographic Stamp Identifier (CSID)
- Linked to your VAT account
Step 3: Integrate POS with ZATCA APIs
Your POS must establish real-time invoice submission through:
- Clearance APIs (for standard invoices)
- Reporting APIs (for simplified invoices)
Step 4: Begin Issuing E-Invoices
All issued invoices must:
- Be in XML format
- Include buyer VAT (when applicable)
- Contain cryptographic stamp, UUID, QR code, and digital signature
- Be instantly submitted to ZATCA
Common Mistakes to Avoid
- Using outdated POS systems with no XML or API capabilities
- Missing cryptographic stamps or hash chains
- Ignoring QR code formatting rules
- Failing to register devices with ZATCA
- Not testing API communication before going live
Benefits of ZATCA Compliance for Restaurants
While initially viewed as a regulatory burden, ZATCA compliance provides several operational advantages:
- Automated tax reporting, reducing manual accounting errors
- Improved audit readiness and simplified government interactions
- Greater customer trust through transparent billing
- Unified VAT structure across dine-in, takeaway, and delivery
Final Checklist for Restaurant Owners
Certified ZATCA POS software (Tijarah360 recommended)
Registered POS device with CSID
Real-time API setup with ZATCA
Trained staff on compliant invoicing
Testing and validation before go-live
Conclusion
Compliance with the ZATCA e-invoicing mandate is not optional in 2025—it is a legal requirement for all restaurants operating in Saudi Arabia. With the right tools and systems in place, this compliance can become a strategic advantage that improves your operations, builds customer trust, and keeps your business future-ready.
To ensure seamless ZATCA compliance for your restaurant, schedule a free demo at www.tijarah360.com or contact us today. Let Tijarah360 handle the regulations while you focus on growing your business.