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.