VAT and e-invoicing in the UAE and Saudi Arabia: what your billing software needs

VAT in the Gulf at a glance

The UAE and Saudi Arabia both introduced VAT in 2018. Saudi Arabia’s standard rate is 15% and the UAE’s is 5%. Registered businesses must issue compliant tax invoices, keep records and file returns on time.

Saudi Arabia: ZATCA e-invoicing (FATOORA)

Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) requires e-invoicing. The first phase required invoices to be generated electronically by compliant systems, with QR codes on simplified invoices. The second phase, integration, is being rolled out in waves and requires systems to connect to ZATCA’s FATOORA platform. Your software must produce invoices in the required format and handle the integration when your business is selected.

UAE: preparing for e-invoicing

The UAE has announced a phased rollout of electronic invoicing. Businesses should check the Ministry of Finance and Federal Tax Authority for the latest timeline, and choose billing software that can adapt to structured e-invoices.

What your billing software should support

Compliant tax invoices with all mandatory fields, including tax registration numbers. Arabic and English invoice layouts. QR codes where required. Credit and debit notes linked to original invoices. Audit trails that prevent silent editing of issued invoices. Integration readiness through APIs for e-invoicing platforms. VAT reports that make filing returns easier.

Off-the-shelf or custom?

Accounting tools such as Zoho Books and QuickBooks cover standard invoicing for many businesses. Companies with industry-specific workflows, such as trading, contracting or clinics, often need custom billing or ERP software that builds compliance into their own process.