How Does an ERP System Relate to ZATCA E-Invoicing?
E-invoicing ("Fatoora") is ZATCA's (Saudi Zakat, Tax and Customs Authority) program requiring businesses to issue invoices electronically instead of on paper, in two phases: a generation phase, then an integration phase (Phase 2) with the authority's platform.
How does an ERP system relate to ZATCA?
An ERP system already manages invoicing, sales, and purchasing, which makes it the natural place to implement e-invoicing requirements: generating invoices in the required format (XML/PDF-A3), adding a cryptographic stamp and QR code, and integrating directly with the authority's platform for Phase 2 — instead of using a separate tool disconnected from sales and accounting.
How does novaERPS support e-invoicing?
- Sales invoices generated in the format and fields ZATCA requires.
- Cryptographic stamp and QR code on every invoice.
- Direct integration with the authority's platform (Phase 2 — integration phase).
- Invoicing automatically linked to the general ledger and inventory, with no duplicate entry.
What is the difference between Phase 1 and Phase 2?
Phase 1 (Generation) required businesses to issue invoices electronically in a structured format instead of on paper. Phase 2 (Integration) added a cryptographic stamp, a QR code, and direct integration with the authority's platform (Fatoora), with two tracks depending on invoice type: Clearance for tax invoices (B2B), validated before delivery to the customer, and Reporting for simplified invoices (B2C), reported to the authority after being issued to the customer. Phase 2 also requires XML per the UBL 2.1 standard, embedded inside a PDF/A-3 file.
How does the system support IFRS?
Alongside ZATCA, novaERPS's financial statements are structured to IFRS standards, so the Zakat base, tax returns, and international financial statements come from the same general ledger.
Related questions
- Does novaERPS specifically support ZATCA?
- Does novaERPS support accounting?
- Is novaERPS suitable for Saudi companies?