ZATCA e-invoicing requires every VAT-registered business in Saudi Arabia to issue invoices electronically and, in Phase 2, to connect its invoicing system to ZATCA’s FATOORA platform. If your company has received, or expects, its integration wave notice, the safest path is a compliant ERP such as Odoo, set up and tested before your deadline.
Key takeaways
- Phase 1 (Generation) requires electronic invoices with a QR code; Phase 2 (Integration) connects your system to FATOORA.
- Phase 2 is rolled out in waves, and ZATCA notifies each taxpayer in advance of its wave.
- Standard (B2B) invoices are cleared by ZATCA before sharing; simplified (B2C) invoices are reported after issue.
- Odoo supports ZATCA Phase 1 and Phase 2 through its Saudi localisation.
What is ZATCA e-invoicing?
E-invoicing, known as FATOORA, is the Zakat, Tax and Customs Authority’s programme to replace paper and manually edited invoices with structured electronic invoices. The aim is to reduce tax evasion, improve transparency and make VAT reporting more accurate.
Phase 1 vs Phase 2: what changed
- Phase 1, Generation: issue and store invoices electronically from a compliant system, with a QR code on simplified invoices.
- Phase 2, Integration: your system connects to FATOORA, generates invoices in the required XML format with a cryptographic stamp, and shares them with ZATCA.
- Clearance for standard tax invoices: ZATCA validates the invoice before it is sent to the buyer.
- Reporting for simplified invoices: the invoice is shared with ZATCA after it is issued to the customer.
How to prepare for your integration wave
- Confirm your wave and deadline from your ZATCA notification.
- Check that your ERP or POS supports Phase 2, including onboarding and device certificates (CSID).
- Clean your master data: VAT numbers, addresses and product tax settings.
- Test standard and simplified invoices, credit notes and debit notes in the simulation environment.
- Train your accountants and cashiers on handling rejected invoices.
How Odoo keeps you compliant
Odoo’s Saudi localisation generates ZATCA-compliant XML invoices, signs them, adds the QR code and submits them to FATOORA directly from Accounting and Point of Sale. If ZATCA rejects an invoice, the reason appears in Odoo so your team can correct it immediately, without re-typing anything.
Frequently asked questions
Who must comply with ZATCA Phase 2?
VAT-registered businesses in Saudi Arabia are brought into Phase 2 in waves. ZATCA notifies each taxpayer in advance, so check your notifications and plan your setup before the deadline.
Is Odoo approved for ZATCA e-invoicing?
Odoo supports ZATCA Phase 1 and Phase 2 through its Saudi localisation. NEXA completes the onboarding, certificates and testing with your ZATCA account.
Can NEXA add ZATCA to an existing Odoo system?
Yes. NEXA can activate and test ZATCA e-invoicing on your current Odoo database, including systems implemented by other partners.
Get ZATCA-ready before your wave.
Talk to a NEXA Odoo consultant. The first consultation is free.
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