Empowering Saudi Enterprises: Embrace the Future with ZATCA E-Invoicing for Unparalleled Success

Significant efforts have been made in recent years by the Kingdom of Saudi Arabia to digitise its tax administration and simplify corporate operations. Implementing ZATCA (Zakat, Tax, and Customs Authority) e-invoicing is one such endeavour. Businesses must create electronic invoices and submit them to the tax administration immediately under this cutting-edge system.
 

In this blog, we'll look at how the well-known ERP program Odoo can help Saudi Arabian companies comply with ZATCA e-invoicing regulations.

WHY ZATCA?

The ultimate objective of this action is to make commerce more transparent and smooth by integrating corporate data with the ZATCA system. In addition to keeping abreast of the transactions that are sent to their portal, the government can standardise the format in which invoices are reported to the system. Since all bills will be verified on the ZATCA portal, fraudulent activities like phoney invoices can be identified. Paper storage and handwritten invoices will be phased away.

Additionally, e-invoicing will establish a shared database for audits. Tax authorities won't need to perform audits as regularly as they once did because of this easily accessible information.

Guidelines for e-invoicing in KSA

All VAT-liable taxable items and services will be covered by the e-invoicing rules.

For all B2B, B2G, and B2C transactions, e-invoicing is required. You should give a buyer a paper copy of the invoice in addition to the electronic version.

The invoices must be in Arabic. The electronic invoice must be sent in Arabic, but you can choose to add another language or translate them.

 

ZATCA implementation in Odoo

It can be set up using Odoo to meet Saudi ZATCA's e-invoicing specifications. Only Odoo versions 15 and 16 can use this feature.

An integrated e-invoicing module that complies with Saudi regulatory requirements is provided by Odoo, a flexible ERP solution

For Arabic invoice

 

Enter your username and password after clicking Login to access the ZATCA e-invoice portal.

 

To access the OTP that you will receive from the portal in two minutes, make sure you have prompt access to the phone number linked to your ZATCA account.

 

ZATCA - Odoo Integration

Setting up the environment

We use Simulation mode in order to test invoices

Once it is in Production mode then all the invoices will be submitted to ZATCA

 

Configure Company

Update the company details such as:

• Company name
• Company full address such as street, city, ZIP, State, Country
• Building number, Plot identification number, Neighbourhood
• Identification Scheme, Identification Number
• VAT number
• Company currency

 

Journal On-boarding

We will have to onboard one gadget for every sales journal.

Open your sales journal by selecting Accounting -> Configuration -> Journals, then input the journal's serial number under the ZATCA tab.

Select the Onboard Journal option. A wizard requesting the OTP for the CSID will open as soon as we obtain the OTP for each journal from the Simulation Fatoora site. 

 

Enter the OTP and complete the process

 

 

 

 

 

Work Flow

NB: It should be confirmed if a customer is an individual or a business when creating one.

The e-invoice status will be Reported if it is a B2C invoice and Cleared if it is a B2B invoice.

Create an invoice using the standard accounting process or a sale order.

A confirmation notice appears at the top of the invoice after it has been posted.

You have two options: either select the process now to send the invoice to the Fatoora portal right away, or all produced invoices will be sent there.

Either you can click on the process now as it immediately sent the invoice to the Fatoora portal, or all the invoices generated will be sent to the Fatoora portal at the end of the day automatically.

B2B Invoice: 

As previously stated, Standard documents (B2B), which are relevant for B2B transactions and typically entail two VAT-registered taxpayers, are subject to clearance.

According to ZATCA's e-invoicing rules, the seller must first submit their Standard documents (B2B) for clearance before delivering them to the buyer. To put it another way, a normal B2B document is only deemed legitimate if it has already received ZATCA's clearance stamp.

B2C Invoice:

As previously stated, reporting is relevant to B2C transactions and simplified documents (B2C). As a result, taxpayers are permitted to submit their Simplified Documents (B2C) within 24 hours of the transaction being finalised under ZATCA's e-Invoicing laws.