ZATCA Phase 2 Explained
Integration Phase

What is ZATCA Phase 2?

Phase 2, known as the Integration Phase, requires your accounting software to connect directly with the ZATCA Fatoora portal. Unlike Phase 1, where storing a PDF locally was sufficient, Phase 2 mandates that every invoice is digitally signed and cleared (or reported) in real-time or near real-time.

The XML Standard (UBL 2.1)

ZATCA does not accept PDF files. It only accepts XML files based on the UBL 2.1 standard (Universal Business Language). Your PDF is merely a human-readable visualization of this XML.

Key XML Structure

A compliant XML must contain specific UUIDs and Hash chains. Here is a simplified view of the critical StandardInvoice structure:

<!-- Standard UBL Invoice Structure -->
<Invoice xmlns="urn:oasis:names:specification:ubl:schema:xsd:Invoice-2">
    <cbc:ProfileID>reporting:1.0</cbc:ProfileID>
    <cbc:ID>INV-2025-001</cbc:ID>
    <cbc:UUID>8e6000cf-1a98-4174-b3e7-4933cc0341e5</cbc:UUID>
    <cbc:IssueDate>2025-01-25</cbc:IssueDate>
    
    <!-- Previous Invoice Hash (Critical for Chain) -->
    <cac:AdditionalDocumentReference>
        <cbc:ID>PIH</cbc:ID>
        <cac:Attachment>
            <cbc:EmbeddedDocumentBinaryObject mimeCode="text/plain">NWZIY2ViNjZm...</cbc:EmbeddedDocumentBinaryObject>
        </cac:Attachment>
    </cac:AdditionalDocumentReference>
    ...
</Invoice>

QR Code Specifications (TLV)

The QR code in Phase 2 is not a URL. It is a Base64 encoded string containing fields in TLV (Tag-Length-Value) format.

Common Rejection Errors

When integrating, you will likely encounter these errors from the ZATCA Validation SDK or API. Here is how to fix them.