How the Odoo Accounting module supports the e-invoicing (FATOORA) requirements of the Zakat, Tax and Customs Authority in both Phase 1 and Phase 2.
E-invoicing in Saudi Arabia: an overview
The Zakat, Tax and Customs Authority (ZATCA) launched the e-invoicing (FATOORA) project as part of a wider plan to develop the Kingdom's tax system and strengthen financial transparency. The project has two main phases: Phase 1 (the generation phase), which requires businesses to issue and store invoices electronically and to include a QR code where required, and Phase 2 (the integration phase), which requires billing systems to be integrated with the Authority's platform so that invoices are submitted to it electronically.
For any company that uses an accounting system, this means the system must be technically compatible with ZATCA requirements. This is where Odoo Accounting comes in, as one of the international systems that has developed a dedicated localization for Saudi Arabia to address these requirements.
How does Odoo Accounting support ZATCA requirements?
Odoo includes a dedicated Saudi Arabia localization package that adds the fields and settings needed for e-invoicing. Its main features include:
- Issuing electronic tax invoices containing the required fields (VAT number, date and time of issue, total amount and tax)
- Generating a QR code automatically on invoices in the TLV format specified by the Authority
- Support for issuing credit and debit notes electronically
- Applying the cryptographic stamp to invoices in Phase 2
This built-in support reduces the need to develop additional systems or rely on separate middleware to issue compliant invoices.
Integration with the FATOORA platform (Phase 2)
In Phase 2, the Authority requires businesses to connect their systems to the FATOORA platform through application programming interfaces (APIs), sending e-invoices and credit and debit notes either in real time or within a set period, depending on the type of invoice. Businesses are brought into Phase 2 in waves announced by the Authority.
Odoo supports this integration through:
- A direct connection to the Authority's platform for invoice clearance or reporting, depending on the invoice type
- The device registration (using an OTP) that ZATCA requires for each invoicing unit
- Recording the Authority's responses and the status of each invoice (accepted, rejected, pending) inside the system
- Resubmission of rejected invoices once they have been corrected
This means that companies running on Odoo do not normally need a separate system to manage e-invoicing; it becomes part of the normal accounting workflow.
Additional advantages of the Odoo Accounting module
Beyond ZATCA e-invoicing, Odoo Accounting offers a wide range of accounting tools that suit Saudi companies of all sizes:
- A chart of accounts that can be customized to the nature of the business
- Value added tax (VAT) management and tax returns
- Automatic bank reconciliation by importing bank statements
- Ready-made financial reports (balance sheet, income statement, cash flow)
- Fixed asset and depreciation management
Why ZATCA compliance is a strategic necessity, not an option
Failing to meet e-invoicing requirements exposes businesses to penalties under ZATCA's regulations, and it can damage the company's reputation with its customers and partners. As Phase 2 is gradually extended to cover more businesses, every company subject to e-invoicing, whatever its size, needs to make sure its accounting system is ready to connect to the FATOORA platform.
Using an international system such as Odoo, with a Saudi localization that is regularly updated, makes it easier to keep pace with future updates issued by the Authority without having to replace the whole system.
How can Maham Pro help?
The Maham Pro team has specialized experience in implementing Odoo Accounting and configuring it to meet the e-invoicing requirements of the Zakat, Tax and Customs Authority, including setting up tax templates, enabling the QR code and connecting to the FATOORA platform for Phase 2.
We also provide ongoing support to help you keep up with regulatory updates that ZATCA issues in the future. Learn about Maham Pro's Odoo accounting services and prepare your company for e-invoicing requirements.
As part of our Odoo implementation services in Saudi Arabia, we configure the system to meet ZATCA e-invoicing requirements.