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ZATCA E-Invoicing, also known as Fatoora, is a digital invoicing system introduced by the Zakat, Tax, and Customs Authority (ZATCA) of Saudi Arabia. It aims to ensure transparency, prevent fraud, and streamline tax compliance for businesses.
- Phase 1 (Generation Phase): Implemented on December 4, 2021, requiring businesses to generate and store tax invoices electronically.
- Phase 2 (Integration Phase): Effective from January 1, 2023, requiring integration with ZATCA systems for real-time invoice validation and reporting.
All taxable persons and third parties issuing tax invoices on behalf of businesses in Saudi Arabia must comply with ZATCA E-Invoicing.
- Standard Tax Invoice: Used for B2B transactions and requires integration with ZATCA.
- Simplified Tax Invoice: Used for B2C transactions and must include a QR code for verification.
Fatoora is the official ZATCA platform used for E-Invoice validation, compliance verification, and API integration for Phase 2 implementation.
Integration involves:
- Installing required Odoo ZATCA modules.
- Configuring ZATCA VAT Number and CR Number in Odoo.
- Setting up invoice validation via Fatoora portal.
- Submitting invoices electronically to ZATCA.
- Digital signature and QR code generation.
- Automatic invoice validation and real-time reporting.
- Secure API-based integration with ZATCA.
- Compliance with VAT and e-invoicing regulations.
- Simulation Mode: A test environment to ensure compliance before going live.
- Production Mode: The live environment where invoices are officially reported to ZATCA.
Non-compliance with ZATCA E-Invoicing regulations can result in fines, penalties, and legal consequences.
Zesty Labs provides end-to-end Odoo implementation services for ZATCA Phase 2, ensuring smooth compliance, integration, and ongoing support.
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