How Shabakah’s E-Invoicing Solution Helps You Meet Phase 2 (Integration Phase) Requirements
As the Kingdom of Saudi Arabia continues its ambitious digital transformation, businesses are expected to comply with evolving regulations set by the Zakat, Tax and Customs Authority (ZATCA). One of the most important mandates is the adoption of e invoicing software in Saudi Arabia, especially in line with the implementation of Phase 2: the Integration Phase.
https://shabakah.sa/e-invoicing-software/
This phase introduces more complex technical requirements than Phase 1, and non-compliance can lead to serious penalties. To help businesses transition smoothly, Shabakah offers a robust, compliant, and user-friendly e-invoicing solution tailored for the Saudi market.
https://shabakah.sa/e-invoicing-software/
In this article, we’ll explain what Phase 2 involves, the challenges it presents, and how Shabakah’s e-invoicing software can help your business stay compliant and ahead of the curve.

What is Phase 2 of E-Invoicing in Saudi Arabia?
Phase 2, also known as the Integration Phase, is the second stage of Saudi Arabia’s e-invoicing journey. It builds upon the requirements introduced in Phase 1 (the Generation Phase), where businesses were required to generate and store e-invoices using compliant systems.
https://shabakah.sa/e-invoicing-software/
In Phase 2, the requirements are expanded to include integration with ZATCA’s systems in real-time. This means that all e-invoices must be generated, signed, and transmitted electronically through compliant software that communicates directly with ZATCA.

Key aspects of Phase 2 include:

Invoice clearance for B2B transactions

Real-time or near real-time reporting for B2C transactions

Cryptographic stamping and UUID generation

QR code generation and invoice formatting in XML

Direct integration via ZATCA’s API

The rollout of Phase 2 began in January 2023 and is being implemented in waves, depending on the annual revenue of businesses.

Why Phase 2 is More Challenging for Businesses
While Phase 1 required businesses to stop using handwritten or unstructured invoices, Phase 2 raises the bar significantly. Businesses now need advanced technical capabilities to connect with ZATCA’s platform and comply with:

Invoice data standardization in XML format

Security features like cryptographic stamps and digital signatures

Real-time validation and clearance of invoices

Stable internet connectivity and secure system integration

This makes it crucial to choose a reliable and ZATCA-approved e invoicing software in Saudi Arabia that offers both technical compliance and user ease.

Introducing Shabakah’s E-Invoicing Solution
Shabakah offers a modern, cloud-based e-invoicing software developed specifically for businesses operating in Saudi Arabia. It is designed to be fully ZATCA-compliant and supports all the advanced features required in Phase 2.

Whether you run a small business, a growing enterprise, or a large corporation, Shabakah’s e-invoicing solution is equipped to handle the complexities of the Integration Phase.

Here’s how Shabakah helps your business meet the Phase 2 requirements with confidence.

Seamless Integration with ZATCA’s System
One of the core components of Phase 2 is the direct integration with ZATCA's Fatoora portal via APIs. Shabakah ensures real-time communication between your business and ZATCA’s platform.

With Shabakah, your invoices are:

Automatically validated and cleared before being issued to the buyer

Sent and stored in the correct XML format

Securely transmitted through encrypted channels

This automated flow reduces the risk of rejection or delays, ensuring your invoicing remains uninterrupted.