What is e-invoicing?

Phase one: generation and storage

It began on 4 December 2021 and covered every VAT-registered business. It required invoices to be issued from an electronic system (not by hand or a word processor), stored electronically, carry a QR code on simplified invoices, and never be deleted or edited after issue.

Phase two: integration

It began in January 2023 and applies in waves of businesses by annual revenue, each wave notified at least six months before its date. It requires the invoicing system to be integrated with the Fatoora platform, invoices to be generated as XML to the authority’s specification, digitally signed with the device certificate, and chained by hash to prevent tampering.

Standard and simplified invoices

• The standard invoice (B2B): issued to another business, carries the buyer’s VAT number and details, and in phase two is submitted to the authority and cleared before delivery to the customer.
• The simplified invoice (B2C): issued to an individual consumer, carries a QR code, and is reported to the authority within 24 hours of issue.
• Credit and debit notes: issued electronically the same way, with a reference to the original invoice.

What does the QR code contain?

The seller’s name, VAT number, invoice date and time, total including VAT, and the VAT amount. In phase two it also carries the invoice hash, the digital signature and the certificate’s public key, so the authority’s app can verify the invoice when scanned.

What must accounting software provide?

• Device onboarding with the Fatoora platform from inside the system using the OTP from the authority’s portal.
• XML to the authority’s specification, the cryptographic stamp and the hash chain generated automatically with no user involvement.
• Both the clearance (standard) and reporting (simplified) flows according to invoice type.
• A submission log per invoice showing its status and any warnings, with automatic retries.
• A sandbox environment for testing the integration before the deadline.
• No editing or deleting an invoice after issue; corrections through a credit or debit note.

Compliance steps for a new business

1. Register for VAT and obtain your VAT number.
2. Choose invoicing software compliant with phase two.
3. Complete your tax details and national address in the software.
4. Obtain the OTP from the Fatoora portal and onboard the device.
5. Issue invoices only from the system, and correct mistakes with notes, never by deletion.