ZATCA E-Invoicing for Online Stores: A Practical Guide for Salla, Zid & Shopify Sellers
Selling online does not exempt you from ZATCA. If your store passed the Wave 25 threshold, every order needs a compliant e-invoice reported to ZATCA. Here is what that means for Salla, Zid and Shopify sellers, and how to automate it.
Many online sellers in Saudi Arabia assume e-invoicing is something for big companies with ERP systems. Wave 25 changes that. Any VAT-registered business whose taxable revenue passed SAR 187,500 in any year from 2022 to 2025 must connect its invoicing to ZATCA's Fatoora platform by 1 February 2027, and that includes stores on Salla, Zid and Shopify.
For an online store, Phase 2 means every order produces an e-invoice in ZATCA's format, signed by your system and reported to ZATCA automatically. A PDF with a QR code is no longer enough.
This guide explains what changes for e-commerce, the points where online stores usually get it wrong, and how to connect your store without changing platforms.
Who this applies to
Salla stores
Fashion, beauty, electronics and gift stores selling mostly to consumers.
Zid stores
Retail brands with online orders and often a physical shop too.
Shopify stores
Saudi brands selling locally and across the GCC.
Instagram & WhatsApp sellers
Orders taken on social media still need compliant invoices.
Stores with B2B customers
Wholesale or corporate orders that need standard tax invoices.
Online + physical shop
Online orders and a POS in store, both issuing invoices.
Which invoice does an online order need?
Most online orders are sales to consumers, which need a simplified tax invoice. You share it with the customer and report it to ZATCA within 24 hours.
When the buyer is a company with a VAT number, for example an office ordering in bulk, the order needs a standard tax invoice. That invoice must be cleared by ZATCA before you send it to the buyer, and it needs the buyer's VAT number and national address.
- Consumer orders: simplified tax invoice, reported within 24 hours.
- Business orders: standard tax invoice, cleared before it is sent.
- Every invoice is signed by your system and includes a QR code.
- Each store or system issuing invoices is onboarded as its own device.
Is your platform's invoice already Phase 2 compliant?
Store platforms and their apps offer different invoicing features, and they change over time. Some print a VAT invoice with a QR code, which covers Phase 1. Phase 2 requires more: the invoice must be produced in ZATCA's XML format, signed with your certificate and reported to the Fatoora platform.
Before the deadline, check exactly what your current setup does. If your invoices are not reported to ZATCA, you are not ready for Wave 25, even if the PDF looks correct.
- Is every invoice reported to ZATCA, or only printed with a QR code?
- Is your business onboarded on the Fatoora portal with its own certificate?
- Are returns handled as credit notes linked to the original order?
- Do business customers get standard invoices with their VAT details?
The e-commerce details that cause problems
Online stores have a few situations that physical shops do not. These are where we see most errors.
- Returns and refunds: issue a credit note that references the original order invoice, not a new negative order.
- Coupons and discounts: apply them before VAT and keep rounding consistent, or the totals will not match.
- Shipping fees: include them on the invoice with the correct VAT treatment.
- Cash on delivery and instalment payments: the payment method does not change your duty to issue the invoice.
- Cancelled orders: once an invoice is issued, cancel it with a credit note rather than deleting it.
- Several sales channels: orders from the website, social media and a physical shop all need compliant invoices.
How to connect your store to ZATCA
You do not need to change your store platform. The usual approach is to connect the store to an e-invoicing system with ZATCA built in. Each paid order is sent to that system automatically, which creates the invoice, signs it, reports it to ZATCA and sends it to the customer.
The same system can issue invoices for your physical shop, social media orders and B2B customers, so all your invoices, VAT reports and returns are in one place.
- Connect the store, so orders flow in automatically.
- Onboard your business on the Fatoora portal with a one-time code.
- Test consumer orders, business orders, discounts and returns.
- Go live, with automatic checks on every invoice.
Timeline for Wave 25 sellers
ZATCA will notify businesses in Wave 25, and the integration deadline is 1 February 2027. Peak sales seasons such as White Friday and Ramadan are the worst time to change invoicing, so plan to be live well before them.
- Check your taxable revenue for each year from 2022 to 2025 against SAR 187,500.
- Review what your current store invoicing does today.
- Connect and test outside your busiest sales period.
- Keep access to the Fatoora portal ready for onboarding.
How CODEXTERS helps online stores
We connect Salla, Zid and Shopify stores to ZATCA, issue Arabic and English invoices with your branding, and handle returns, B2B orders and rejected invoices for you. If you also have a physical shop, the same system covers your point of sale.
Send us your store link on WhatsApp at +966 57 343 2877, and we will confirm your deadline and the right setup in a free 15-minute check.
Frequently asked questions
Do Salla, Zid and Shopify stores need ZATCA Phase 2 e-invoicing?+
Yes, if the business is VAT-registered and falls within a wave. For Wave 25, that means taxable revenue above SAR 187,500 in any year from 2022 to 2025, with an integration deadline of 1 February 2027.
Is the VAT invoice from my store platform enough?+
Only if it is reported to ZATCA's Fatoora platform in the required format and signed with your certificate. An invoice with a QR code alone covers Phase 1, not Phase 2.
Do I need to change my store platform?+
No. Your store can be connected to an e-invoicing system that issues, signs and reports invoices for every order automatically.
How are returns handled under ZATCA?+
With a credit note that references the original invoice and states the reason for the return. Do not delete the original invoice or create a negative order.
What if some customers are companies?+
Business customers with a VAT number need a standard tax invoice that includes their VAT number and national address. It must be cleared by ZATCA before you send it.
I also sell in a physical shop. Do I need two systems?+
No. One e-invoicing system can handle online orders, point-of-sale sales and B2B invoices, with each device onboarded with ZATCA.
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