ZATCA Phase 2 is mandatory for most Saudi businesses by 2026. The fines for non-compliance are public; the implementation cost isn't. Here's what it actually takes to be compliant.
What ZATCA Phase 2 actually requires
ZATCA Phase 2 — the Integration Phase of Saudi e-Invoicing — requires every taxable B2B invoice to be sent to FATOORA in real time, cryptographically stamped, archived, and QR-coded. Failure means rejected sales, late-payment penalties, and ZATCA fines that escalate per occurrence.
The cost of compliance depends on what you already have. For a retailer with a modern ERP and proper invoice templates, the integration is a small project. For someone running Excel + manual VAT returns, it's a full ERP modernisation.
Real cost components in SAR
- ZATCA-certified software: SAR 18k–35k one-time for the Novasoft Phase 2 extension on Business Central
- Integration to your ERP: 15–45 person-hours, ~SAR 25k–60k
- FATOORA registration + crypto setup: included in implementation
- Sandbox testing + UAT: 5–10 person-hours, ~SAR 8k–15k
- Go-live support: 3–5 days on-site, ~SAR 12k–20k
- Annual maintenance: ~SAR 4k–8k/year
All-in for a single-entity Saudi retailer: SAR 60k–130k year 1; SAR 5k–10k/year ongoing.
Cost of non-compliance — the other side of the math
ZATCA's published fine table:
- Failure to issue e-invoices: SAR 5,000–50,000 per occurrence
- Failure to maintain QR-code-compliant invoices: SAR 5,000–50,000
- Not integrating with FATOORA by your sector's deadline: SAR 10,000–50,000
- Repeated violations: escalation to operational suspension
For a mid-size retailer processing 5,000+ invoices/month, even single-digit non-compliance rates mean a fine bill in the hundreds of thousands of SAR within months.
Novasoft's fixed-fee ZATCA package
For Business Central customers, the Novasoft KSA e-Invoicing extension ships with a fixed-fee implementation:
- Existing BC tenant + standard invoice templates: SAR 60k one-time (extension + integration + sandbox + go-live)
- Existing BC tenant + customised invoice templates: SAR 95k one-time
- Non-BC ERP requiring middleware: SAR 130k–180k one-time
All packages include 90 days of post-go-live support and 12 months of ZATCA regulation update coverage.
How to avoid the worst-case spend
If you're on Business Central or Dynamics 365, ZATCA Phase 2 is a small project. If you're on Excel, Tally, or a homegrown system, the right move is usually to migrate to BC + ZATCA in one programme rather than build ZATCA into a system that will need replacing anyway.
Read our full ZATCA setup walkthrough for the technical step-by-step.
Frequently asked questions
Is ZATCA Phase 2 mandatory for every Saudi business?
Every taxable B2B issuer with annual revenue above a threshold ZATCA sets per wave. By 2026, almost every commercial business is in scope.
Can we delay ZATCA Phase 2 implementation?
ZATCA's wave schedule is published; you'll have your deadline letter at least 6 months before activation. After that, non-compliance fines apply per occurrence.
What if our ERP doesn't support ZATCA Phase 2?
Two options: middleware (~SAR 130k+) or migrate to a ZATCA-ready ERP like Business Central. For most retailers, migration is the cheaper 3-year answer.
Does the Novasoft package cover B2C invoices too?
Yes. ZATCA Phase 2 covers both B2B and B2C (simplified) invoices. The Novasoft extension handles both.
What about credit notes and refunds?
Fully handled — credit notes, debit notes, refunds and corrections all flow through the same ZATCA pipeline.
How long does the implementation take?
4–8 weeks for an existing BC customer; 12–16 weeks if you're migrating from a non-BC system in the same programme.
Where to go next
Read the full overview of KSA ZATCA Phase 2 extension. For a deeper dive into related capability, see ZATCA Phase 2 setup walkthrough. When you're ready to talk specifics, book a 30-minute call with a Novasoft consultant.