ZATCA Phase 2 checklist for Odoo users

Saudi Arabia's e-invoicing programme (known as Fatoora) runs in two phases. Phase 1, generation, started on 4 December 2021 and requires invoices to be issued electronically from a compliant system. Phase 2, integration, started on 1 January 2023 and connects your invoicing system directly to ZATCA's platform. Companies join Phase 2 in waves based on revenue, and ZATCA notifies each taxpayer of its wave in advance.

What Phase 2 changes

• Invoices are produced in a structured XML format (UBL 2.1), not just as PDFs.
• Each invoice carries a cryptographic stamp, a unique ID and a QR code, and is linked to the previous invoice.
• Standard tax invoices (B2B) must be cleared by ZATCA before you share them with the buyer.
• Simplified tax invoices (B2C) must be reported to ZATCA within 24 hours of issue.

The checklist

1. Confirm your wave and deadline. Check the notification from ZATCA and your account on the Fatoora portal.
2. Check your Odoo version and edition. Make sure the Saudi e-invoicing module is available for the version and edition you run.
3. Complete your company data. VAT number, commercial registration number, Arabic legal name and the full Saudi national address (building number, street, district, city, postal code).
4. Clean your customer data. B2B customers need correct VAT numbers and complete addresses, or their invoices will be rejected.
5. Review your taxes. Standard-rated, zero-rated and exempt taxes must use the correct codes and, where required, exemption reasons.
6. Onboard each invoicing unit. Generate an OTP on the Fatoora portal and use it in Odoo to obtain the compliance and production certificates (CSIDs).
7. Test before going live. Run test invoices, credit notes and debit notes, and fix every warning.
8. Train your team. Credit and debit notes are e-invoices too, and cancelled invoices are handled differently once cleared.
9. Monitor daily in the first month. Review rejected or warned invoices every day until the process is stable.

The most common problems we fix

Missing building numbers in addresses, customers without VAT numbers, wrong tax codes on zero-rated sales, and invoice layouts missing required Arabic fields. Almost all of them are data problems, not software problems, which is why we start with a data review.

Rules and timelines change. Always confirm the current requirements on ZATCA's official website, zatca.gov.sa.