ZATCA Phase 2 is now a buyer’s problem: input VAT denied on non-cleared invoices
Updated
ZATCA’s e-invoicing guideline states that uncleared tax invoices are not eligible for VAT deduction. A supplier that fails to clear an invoice through FATOORA can therefore cost the buyer its input VAT — supplier non-compliance becomes your cost.
Takeaway — Make Phase-2 compliance a supplier-contract condition and check clearance at receipt.
A general briefing on the law as it stood on 28 September 2026. It is not advice on your facts: the position for a given entity depends on its figures, which is what the engine computes.