ZATCA E-Invoicing: Integration Processes
Phase 2 of ZATCA E-Invoicing in Saudi Arabia is crucial as taxpayers must integrate their ERP/POS systems with ZATCA's Fatoora portal, with the implementation planned in waves based on taxpayers' turnover.
The integration process is crucial and depends on business requirements and the type of e-invoices to be generated. This article explains the most commonly used integration processes to comply with Phase 2 of e-invoicing in Saudi Arabia.
ZATCA E-invoicing process for Standard Tax Invoice(Online always):
You can integrate multiple ERP/POS units through Restful' APIs Solution, this integration method is favored for its capacity to facilitate smooth invoice generation while making minimal changes to your existing ERP/POS/billing systems.
The scenario will be as follow:
Your ERP/POS system generates an invoice and transmits it to the API solution, including all mandatory fields in JSON format.
Then, the API solution validates the invoice and generates a corresponding hash. It then sends the invoice in a specified XML format to ZATCA for clearance.
After ZATCA approves the standard tax invoice, ZATCA shares the cleared e-invoice with a QR code and cryptographic stamp with the API solution.
The ERP/POS system get the e-invoice in XML format, which includes a QR code and cryptographic stamp.
Finally, you have the capability to issue a ZATCA-compliant e-invoice to the buyer, presented in PDF/A3 format with embedded XML or only XML format.
Furthermore, the ERP/POS system store the generated e-invoice for future reference and compliance requirements.
ZATCA E-invoicing process for Simplified Tax Invoice(Online):
For simplified invoices, you have the option to report them in real-time (at the time of sale) (online mode). The e-invoicing process for this option is as follows:
Your ERP/POS system generates an invoice and transmits it to the API solution, including all mandatory fields in JSON format.
Tthe API solution validates the invoice and generates , QR code, and cryptographic stamp. It then sends the invoice in a specified XML format to ZATCA for reporting.
The API solution receives the reporting status from Zatca.
The API solution send the e-invoice in XML format, which includes a QR code and cryptographic stamp to the ERP/POS system.
The ERP/POS system can issue the reported e-invoice to the buyer in a physical copy or soft copy in PDF/A3 with embedded XML.
Finally, the ERP/POS system store the generated e-invoice for future reference and compliance requirements.
Zatca E-invoicing process for Simplified Tax Invoice(Offline):
In case you cannot ensure real-time reporting, you can generate e-invoices offline with XML and QR codes and later report the invoices to ZATCA (within 24 hours max).
The e-invoicing process for this option is as follows:
You can generate invoices in your ERP/POS system offline, complete with Hash, QR code, and cryptographic stamp,
It's crucial to issue the simplified tax invoice to the buyer immediately at the point of sale, providing it in either physical form with a QR code or in PDF/A3 format with embedded XML.
Following the sale, the ERP/POS system establishes a connection with the API solution at specified intervals and forwards the e-invoice in a designated XML format for reporting.
Then, the API solution solution transmits the e-invoice data to ZATCA for processing.
Once ZATCA validates the e-invoice, the API solution retrieves the reporting status and send it to the ERP/POS.
Finally, the ERP/POS system store the e-invoice for future reference and compliance requirements.
