Odoo ERP in Saudi Arabia with ZATCA e-Invoicing (Fatoora Phase 2)

What ZATCA Phase 1 and Phase 2 mean for you

Saudi Arabia’s e-invoicing rules, known as Fatoora, arrive in two phases. Phase 1, the generation phase, requires your system to produce structured, QR-coded invoices and store them electronically. Phase 2, the integration phase, connects your ERP to ZATCA’s Fatoora platform so that invoices are shared with the tax authority. It is rolled out in waves.

ZATCA notifies targeted taxpayers at least six months before their integration date. Wave 24, for example, covered taxpayers whose VAT-subject revenue was above SAR 375,000 in 2022, 2023 or 2024, with an integration deadline of 30 June 2026. ZATCA announces further waves separately, so read every ZATCA notice as soon as it arrives rather than waiting for the deadline.

Are you in a wave?

Check your ZATCA notices, then book a readiness assessment. We review your invoice types, branches, tax setup and Odoo version, and give you a plain list of what has to change and in what order. The assessment looks at:

• Invoice types: standard tax invoices, simplified invoices, and credit and debit notes.
• Branches and sales channels that issue invoices, such as point of sale, web store and field sales.
• VAT and tax setup for products, customers and exemptions.
• Your Odoo version and modules, and whether the Saudi localization is installed and current.
• How customer and supplier data, including VAT numbers, is captured and kept clean.
• Who in your finance team will handle rejections and corrections after go-live.

What we set up in Odoo

Odoo publishes a Saudi localization and a ZATCA test workflow. We use them to build a setup you can test before it touches production. Our work typically covers:

• Saudi localization and tax configuration for each legal entity.
• ZATCA onboarding and sandbox testing.
• Credit and debit note flows, and error handling for rejected invoices.
• Arabic and English invoice layouts.
• VAT and Zakat reporting data that your accountant can use.
• User training for your finance and sales teams.

Software alone does not make a company compliant. Whether your setup meets the rules depends on your Odoo version, your legal entities and your wave, which is why we always start with the assessment and put the findings in writing.

One system for the whole business

E-invoicing works best when the invoice is a by-product of clean sales, stock and accounting data, not a separate task. Odoo brings CRM and sales, purchasing, inventory, accounting, point of sale, HR and payroll, manufacturing and projects into one database. Your teams in Riyadh, Jeddah, the Eastern Province or across several cities see the same customers, prices and stock, and finance closes the month from the same numbers.

We set up multi-currency accounting in Saudi riyal and any other currency you trade in, so foreign suppliers and export customers are handled in the same system as local ones.

Who this is for

Saudi companies of any size, and foreign companies with a Saudi VAT registration. Our clients typically work in trading and distribution, retail, construction, manufacturing, healthcare and professional services, but the approach is the same in every sector: fix the data, configure the localization, test, then go live.

An illustrative scenario

The following is a typical situation described in general terms, not a specific client. A trading company sells from one system, invoices from a second and tracks stock in spreadsheets. ZATCA notifies it of its integration date. We start with the assessment, map the invoice types and branches, and decide whether to consolidate onto one Odoo database. We configure the Saudi localization and run test invoices in the ZATCA sandbox. Only then do we move to production, with the finance team trained to correct rejected invoices. The company ends up with one system for sales, stock and invoicing, and a compliance process it can explain to its auditor.

Working in more than one country?

Many Saudi businesses also sell in the region. We run Odoo projects for the UAE, Qatar, Kuwait and Oman too, so one partner can cover your regional entities. Ready to start? Book a free ZATCA readiness assessment.