Saudi Arabia's Zakat, Tax and Customs Authority (ZATCA) requires businesses to issue electronic invoices, and in the integration phase to connect their invoicing systems to ZATCA's FATOORA platform. For organisations that invoice from SAP, this is an SAP project as much as a tax project.
What the requirements involve
- Invoices generated in a structured electronic format with the required data fields
- Cryptographic stamps and QR codes on invoices
- Clearance of standard tax invoices and reporting of simplified invoices through the FATOORA platform
- Onboarding of invoicing solutions with ZATCA within the deadline for your taxpayer wave
Steps for SAP users
- Confirm your integration wave and deadline with your tax advisers.
- Review invoicing processes, document types and master data in SAP for completeness.
- Choose an integration approach: SAP's own solution, a certified middleware provider, or a custom integration.
- Build and test the integration, including error handling for rejected invoices.
- Onboard with ZATCA, run parallel tests and train finance users.
Common pitfalls
Incomplete customer and VAT master data, credit and debit notes that do not reference the original invoice correctly, and weak monitoring of rejected submissions cause most issues. Each of these is easier to fix before go-live than after.
Requirements and timelines are set by ZATCA and can change, so always confirm the current rules with ZATCA's official guidance and your tax advisers.
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