ZATCA E-Invoicing for D365 Business Central

E‑invoicing converts traditional paper invoices into structured electronic documents that can be generated, transmitted, and validated through integrated digital systems. It supports automated processing of invoices, credit notes, and debit notes, enhancing transparency and reducing fraud.

ZATCA’s implementation is rolled out in two phases:

Phase 1 – Generation (Dec 4, 2021): Businesses must generate compliant electronic invoices in approved formats and store them digitally.

Phase 2 – Integration (From Jan 1, 2023 onward in waves): Businesses must integrate their invoicing systems with ZATCA for API‑based validation, cryptographic stamping, UUID generation, and real‑time verification.

Saudi Arabia introduced e‑invoicing to strengthen compliance, minimize tax evasion, and increase financial transparency. Structured invoice transmission enables authorities to detect anomalies, reduce audit frequency, and prevent fraudulent activity. According to ZATCA’s published guidelines, the mandate applies to all VAT‑registered businesses in the Kingdom, covering B2B, B2C, and B2G transactions.

1. ZATCA‑Compliant Invoice Generation

Generate e‑invoices, simplified invoices, credit notes, and debit notes in structured formats meeting ZATCA’s data dictionary, XML standards, and invoice fields.

2. API‑Based Phase 2 Integration

Supports real‑time integration with ZATCA for:

Invoice clearance (B2B & B2G)

Cryptographic stamps

CSID‑based digital signatures

UUID and invoice hash generation

QR code generation (mandatory for simplified invoices)

3. Automated Validation

Automatically validates each invoice for regulatory compliance before submission to ZATCA, reducing the risk of penalties and rejections.

4. Multilingual and Multi‑Currency Support

Supports Arabic and English and operates seamlessly across multiple currencies—ideal for organizations serving diverse clients.

5. Secure Archiving

Stores e‑invoices according to ZATCA retention rules, ensuring audit‑ready and tamper‑proof records.

6. Fully Integrated with D365 F&O and Business Central

Built natively for Microsoft Dynamics 365 to ensure seamless user adoption, reduced implementation time, and minimal operational disruption.

Benefits for Your Business

Reduced Risk of Non‑Compliance

Stay aligned with the latest ZATCA FATOORAH phases, formats, and security requirements.

Operational Efficiency

Automates repetitive tasks, reduces manual entry, and limits invoice errors.

Real‑Time Transparency

Enhanced visibility into invoice lifecycle and ZATCA approval statuses.

Fraud Prevention

Digitally signed, cryptographically stamped invoices reduce manipulation risks.

Faster Tax Refunds and Reconciliations

Structured, validated invoices improve financial accuracy.

ZATCA Compliance Coverage

UBL 2.1 & XML structured formats

UUID and cryptographic stamping

Hashing mechanisms

QR codes for simplified invoices

Real-time or near-real-time integration (Phase 2)

Storage and archiving standards

VAT‑registered businesses

B2B, B2C, and B2G transactions

Third parties issuing invoices on behalf of taxable entities

Microsoft Dynamics 365 Business Central Essential

Microsoft Dynamics 365 Business Central Premium