The Zakat, Tax and Customs Authority (ZATCA) Phase 2 e-invoicing mandate is now in full enforcement across Saudi Arabia. Every business must generate, validate, and report electronic invoices in real-time through the Fatoorah platform.
What Is ZATCA Phase 2?
ZATCA Phase 2, also called the Integration Phase, requires businesses to connect their invoicing systems directly to ZATCA's Fatoorah platform via API. Unlike Phase 1 (which only required generating invoices in a specific format), Phase 2 requires real-time clearance and reporting of every invoice before it is shared with the buyer.
Key Requirements
Technical Requirements - **API Integration**: Direct connection to ZATCA's Fatoorah API - **Cryptographic Stamping**: Every invoice must be digitally signed with a ZATCA-issued cryptographic stamp - **QR Code Generation**: Invoices must include a QR code containing key transaction data - **UUID**: Each invoice must have a unique universal identifier - **XML Format**: Invoices must follow the UBL 2.1 XML schema specified by ZATCA
Business Requirements - **Real-Time Clearance**: B2B invoices must be cleared by ZATCA before being sent to the buyer - **Near-Real-Time Reporting**: B2C invoices must be reported to ZATCA within 24 hours - **Arabic & English**: Invoice content must be available in both languages - **VAT Compliance**: Correct VAT calculations, including zero-rated and exempt supplies
ERP Integration Options
Odoo ERP Mantiqi delivers ZATCA Phase 2 integration for Odoo ERP including custom invoice module, Fatoorah API connector, QR code generation, and cryptographic stamping. Our Odoo ZATCA module supports both B2B clearance and B2C reporting workflows.
Microsoft Dynamics 365 For Dynamics 365 users, we integrate ZATCA compliance through custom plugins and Azure Functions, handling the API communication, XML generation, and stamp validation within the existing Dynamics workflow.
Custom Systems For businesses with proprietary invoicing systems, we build standalone ZATCA middleware that sits between your system and the Fatoorah platform, handling all compliance requirements without modifying your core application.
Implementation Timeline
A typical ZATCA Phase 2 implementation takes 4-8 weeks depending on your existing system complexity:
- 1.Week 1-2: Assessment and API registration with ZATCA
- 2.Week 3-4: Development of integration components
- 3.Week 5-6: Testing in ZATCA sandbox environment
- 4.Week 7-8: Production deployment and compliance validation
How Mantiqi Can Help
We have delivered ZATCA-compliant solutions for multiple Saudi businesses across Odoo, Dynamics 365, and custom platforms. Our team handles the full implementation — from ZATCA registration to production deployment and ongoing support. Contact us for a free ZATCA compliance assessment.