Odoo for Saudi Arabia: VAT, ZATCA E-Invoicing & Fatoora

Saudi VAT in Odoo

Saudi Arabia implemented 15% VAT in July 2020. ZATCA (Zakat, Tax and Customs Authority) mandates electronic invoicing (Fatoora) in two phases. Odoo supports Saudi VAT and has community modules for ZATCA e-invoicing compliance.

Setup

1. Saudi Chart of Accounts

Select Saudi Arabia during Odoo setup to get the localized chart of accounts and VAT configuration.

2. VAT Configuration

# Saudi VAT rates:
# 15% — Standard rate (most goods and services)
# 0% — Zero-rated (exports, international transport)
# Exempt — Financial services, residential rent, local public transport

# Tax setup:
# Sales VAT 15%: Amount 15%, type Sales
# Purchase VAT 15%: Amount 15%, type Purchases
# Zero-rated Sales: 0%
# Exempt: 0% (different tax group for reporting)

3. Company TRN (VAT Registration)

# Company settings:
# VAT Registration Number (TRN): 3XXXXXXXX00003
# Commercial Registration (CR): XXXXXXXXXX
# These appear on all tax invoices

ZATCA E-Invoicing (Fatoora)

# Phase 1 (Generation) — Since Dec 2021:
# - Generate invoices in electronic format
# - QR code on every invoice
# - Specific fields required
# - Cannot use handwritten invoices

# Phase 2 (Integration) — Rolling out 2024-2025:
# - Invoices must be reported to ZATCA platform
# - Cryptographic stamp on each invoice
# - Real-time or near-real-time reporting
# - ZATCA validates and returns clearance

# QR Code must contain (TLV encoded):
# 1. Seller name
# 2. VAT registration number
# 3. Timestamp
# 4. Invoice total (with VAT)
# 5. VAT amount

Odoo Fatoora Modules

Several community and third-party modules provide ZATCA compliance:

• QR code generation on invoices (Phase 1)
• ZATCA API integration (Phase 2)
• XML invoice generation in UBL 2.1 format
• Cryptographic signing and stamping
• Integration testing with ZATCA sandbox

Invoice Requirements (KSA)

• Seller name and address
• VAT registration number
• Invoice date and time
• Sequential invoice number
• Buyer name and VAT number (B2B)
• Item description, quantity, unit price
• Taxable amount and VAT amount per line
• Total including VAT
• QR code (Phase 1+)
• Cryptographic hash (Phase 2)

DeployMonkey for Saudi Arabia

Deploy Odoo for your Saudi business on DeployMonkey. The AI agent configures 15% VAT, Saudi chart of accounts, and helps set up Fatoora e-invoicing modules for ZATCA compliance.