Odoo in Saudi Arabia: VAT and ZATCA E-Invoicing
Running Odoo in Saudi Arabia: the Saudi localisation, 15% VAT, ZATCA e-invoicing phases, QR codes, Arabic invoices, onboarding and what to check before go-live.
Saudi Arabia has one of the most detailed e-invoicing regimes in the region. If you plan to run Odoo there, VAT and ZATCA compliance must be part of the plan from day one.
The Saudi localisation
Odoo provides a Saudi Arabia fiscal localisation with a chart of accounts, VAT taxes and report layouts. Install it when creating the company. Changing localisation after transactions are posted is difficult.
VAT
The standard VAT rate in Saudi Arabia is 15%, with zero-rated and exempt supplies in specific cases. Check the tax list after installation and confirm treatment of exports, imports and exempt items with your tax adviser.
ZATCA e-invoicing (FATOORA)
ZATCA's e-invoicing programme has two phases:
- Phase 1 (generation): invoices must be generated electronically in a compliant system, with required fields and a QR code on simplified invoices.
- Phase 2 (integration): invoices are sent to ZATCA's platform in a standard XML format, cleared or reported depending on the invoice type. Companies are brought in by waves based on revenue.
Check which wave applies to your company and its deadline.
What Odoo needs
For Phase 2, Odoo must be onboarded with ZATCA: generating cryptographic identifiers, receiving a compliance certificate, and then sending invoices. In practice:
- Company details must be complete and correct, including VAT number and address
- Customers need correct details, especially for B2B tax invoices
- Each journal used for invoices must be set up for e-invoicing
- Credit and debit notes must reference the original invoice
Arabic and bilingual invoices
Invoices must include Arabic. Odoo supports bilingual layouts. Make sure product names and your company address have Arabic translations.
Test before go-live
Use ZATCA's simulation or sandbox environment where available. Test standard and simplified invoices, credit notes and rejections. Train finance on what to do when an invoice is rejected.
Beyond VAT
Plan for payroll and HR rules, multi-currency for imports, and Arabic user interfaces for staff.
Selling in the wider Gulf? See Odoo in the UAE, or talk to us about Odoo implementation.
Frequently asked questions
Is Odoo compliant with ZATCA e-invoicing?
Odoo provides a Saudi localisation with ZATCA e-invoicing support in supported versions. Compliance also depends on correct configuration, onboarding with ZATCA and your company's wave and obligations.
Can Odoo print invoices in Arabic and English?
Yes. Odoo supports Arabic, and the Saudi localisation provides bilingual invoice layouts.
Written by
ERP Builders Team · ERP consultants and engineers
Articles written and reviewed by the ERP Builders delivery team — functional consultants, solution architects and developers who implement, integrate and support ERP systems.
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