ZATCA Phase 2 for Restaurants: A Practical Guide
RestroAI by Taiz · · 7 min read
ZATCA is the Zakat, Tax and Customs Authority of Saudi Arabia. Its e-invoicing rules apply in two phases, and Phase 2 is the one that changes how a restaurant's POS must work. This guide explains the difference in plain language and lists what a restaurant needs. We do not give thresholds or deadlines, because ZATCA announces them in waves and publishes them itself: check ZATCA, or your tax adviser, for yours. RestroAI by Taiz does not have a live ZATCA integration, and we say so again below.
Phase 1 and Phase 2 in one minute
Phase 1 is called the Generation phase. Your system must generate tax invoices electronically in a prescribed format, and the invoice must carry certain details, including a QR code on simplified tax invoices, which are the kind a restaurant issues to walk-in customers. Handwritten or editable-after-the-fact invoices are not what the rule is about.
Phase 2 is called the Integration phase. Your e-invoicing system must now connect to ZATCA's Fatoora platform. Invoices are sent to ZATCA, either before issue or shortly after, depending on the invoice type, and your system must hold the technical credentials that identify it to ZATCA.
| Phase 1: Generation | Phase 2: Integration | |
|---|---|---|
| What it asks | Generate compliant e-invoices | Connect your system to the Fatoora platform and send invoices |
| Receipt / invoice | QR code on simplified tax invoices | QR code plus cryptographic stamp on invoices |
| Who is affected | Taxpayers under the e-invoicing rules | Taxpayers in the waves ZATCA announces |
| Timing | Set by ZATCA | Announced by ZATCA in waves |
How the waves work
ZATCA brings taxpayers into Phase 2 in waves, grouped by revenue. It announces each wave and notifies the taxpayers it covers. We are not going to list thresholds or dates here, because they are ZATCA's to set and they have been updated before. A table from a vendor blog goes out of date quickly.
To find your wave: check ZATCA's official announcements and your taxpayer account for notices, or ask your accountant. Do not rely on a POS vendor to tell you whether you are in scope.
If you operate several branches, ask your accountant whether the obligation is assessed on the business as a whole. That affects when all your branches need a compliant system, not only the largest one.
What a restaurant needs
- A compliant e-invoicing solution. Your POS, or software connected to it, must be able to produce invoices in ZATCA's required format and integrate with the Fatoora platform.
- A cryptographic stamp. Under Phase 2, invoices carry a cryptographic stamp from credentials issued to your system through ZATCA's onboarding process.
- A QR code on simplified tax invoices. These are the customer-facing receipts for typical restaurant sales.
- Records that cannot be quietly altered. Invoices should not be editable after issue; corrections go through credit and debit notes.
- A plan for connectivity problems. Ask how your system behaves when the internet or the ZATCA service is unreachable, since service cannot stop at the counter.
Everything above is a general description. The technical specification, invoice types and timings are in ZATCA's own documents. A vendor should be able to show you that its solution follows them and that it works in your set-up.
Questions to ask a POS vendor
- Is your Phase 2 integration live today? Can you show it working with a real branch?
- What documentation or certification do you hold from ZATCA, and can I see it?
- How are cryptographic stamp credentials created and stored for each branch or device?
- What happens to invoices when the connection to Fatoora fails?
- Is the integration included in the price, or a separate fee?
- How are credit notes handled for refunds and cancelled orders?
Vendors that do hold a live integration, such as Foodics, which describes itself as ZATCA certified, will answer these with specifics. Vague answers are a signal.
Where RestroAI stands
RestroAI does not have a live ZATCA integration. It is on the roadmap. We do not call RestroAI ZATCA certified, approved or compliant. If ZATCA Phase 2 applies to you now, ask us for the timeline before you sign up, and consider a vendor that already holds a live integration.
What RestroAI by Taiz does today: a POS with cash and card tenders, sales records by order, terminal sessions that close with Z reports, a kitchen display, an ordering website with an Arabic right-to-left storefront, rider management and a WhatsApp AI ordering channel, serving Saudi Arabia among other markets. Your accountant can use the sales records and Z reports, but they do not replace ZATCA e-invoicing where it applies.
There is no published SAR price. RestroAI costs PKR 15,000 per branch per month with every feature and no setup fee or commission, and you can ask us for a SAR quote. See our Saudi Arabia page.
A sensible way to decide
- If Phase 2 applies to you now: pick a vendor with a live, demonstrable integration. That is not RestroAI today.
- If your wave is later: ask every vendor for a written roadmap date, and make sure you can leave without a long contract.
- If you are outside Saudi Arabia: this phase does not apply; for Pakistan, read the FBR POS integration guide.
Start free at restroai.io. One branch. One price. Every feature.
Frequently asked questions
What is ZATCA Phase 2 for restaurants?
ZATCA Phase 2 is the Integration phase of Saudi Arabia's e-invoicing rules. A restaurant's e-invoicing system must connect to ZATCA's Fatoora platform, and invoices carry a cryptographic stamp and a QR code. ZATCA announces which taxpayers are covered in waves.
What is the difference between ZATCA Phase 1 and Phase 2?
Phase 1 is Generation: issue compliant electronic invoices, with a QR code on simplified tax invoices. Phase 2 is Integration: connect your system to the Fatoora platform and send invoices to ZATCA with a cryptographic stamp.
How do I know which ZATCA wave my restaurant is in?
ZATCA announces waves by revenue and notifies the taxpayers covered. Check ZATCA's official announcements, your taxpayer account, or ask your accountant. We do not list thresholds or dates because ZATCA sets them and they can change.
Does a restaurant need a QR code on receipts under ZATCA?
Yes. Simplified tax invoices, the type a restaurant issues to walk-in customers, carry a QR code. Phase 2 adds a cryptographic stamp. Confirm the current requirements in ZATCA's documents.
Does RestroAI support ZATCA Phase 2?
No. RestroAI does not have a live ZATCA integration. It is on the roadmap, and we do not claim certification or compliance. Ask RestroAI by Taiz for the timeline if it is a requirement for your restaurant.
Can I use RestroAI in Saudi Arabia before ZATCA integration is live?
You can use it for POS, online ordering, delivery and an Arabic storefront. But if Phase 2 already applies to you, you need a system with a live integration. There is no published SAR price, so ask for a SAR quote.