Zoho Books for ZATCA E-invoicing in Saudi Arabia: A Setup Guide

What Phase 2 asks of your invoicing software

In Phase 2 of ZATCA's e-invoicing programme, your invoicing software must connect to ZATCA's Fatoora platform and send each invoice to ZATCA in a set XML format. ZATCA brings businesses into Phase 2 in waves, based on their revenue, and tells each business its integration date in advance.

Zoho Books has a Saudi Arabia edition that connects to Fatoora directly. Once it is connected, you raise invoices as usual and push them to ZATCA from inside Zoho Books. If you are not sure when your business has to integrate, read our guide to ZATCA Wave 25 first.

Prepare your details first

Most failed pushes come from missing or incomplete details, not from the software. Check these before you connect.

• Your organisation profile in Zoho Books has the full Saudi national address: building number, street, district, city, postal code
• Your VAT registration number is entered correctly
• Customer names, billing addresses and item names are also entered in Arabic
• B2B customers have their VAT number and full national address, which standard tax invoices require
• You know who in your team will push invoices, so you can give them permission

Step 1: Get an OTP from the Fatoora portal

Log in to the Fatoora portal with your business account and choose the option to onboard a new solution unit or device. Enter the number of devices. If Zoho Books is the only system that issues your invoices, enter 1.

Fatoora then shows a one-time password (OTP). Copy it straight away. The OTP is valid for only one hour, so keep Zoho Books open and ready before you generate it.

Step 2: Connect Zoho Books and generate the CSID

In Zoho Books, go to the e-invoicing section under Settings, then Taxes and Compliance. Enter the OTP from Fatoora. Zoho Books uses it to generate a CSID, the Cryptographic Stamp Identifier that ZATCA issues to your invoicing software.

To confirm the connection, go back to Fatoora and open the list of solutions and devices. Zoho Books should now appear there. The CSID has an expiry date. When it is due, renew it in Fatoora and then click Renew CSID in Zoho Books, so invoicing does not stop.

Step 3: Give the right people permission to push

Not every user should be able to send invoices to ZATCA. In Zoho Books, go to Settings, then Roles, and turn on Push Transactions in the e-invoicing section only for the roles that need it, such as the accountant or finance manager.

If you use approvals for invoices, Zoho Books pushes an invoice only after it is approved. With more than one approval level, that means after the final approver.

Standard and simplified invoices

ZATCA treats the two types of tax invoice differently, and Zoho Books follows the same rules.

• Standard tax invoices (usually business to business) must be pushed and cleared by ZATCA before you send them to the customer
• Simplified tax invoices (usually business to consumer) are sent to the customer first and must be reported to ZATCA within 24 hours
• Credit notes and debit notes are pushed in the same way as invoices
• Recurring invoices can be set to push and send automatically, or saved as drafts for you to check and push
• Each document shows its status: Yet to be Pushed, Push Initiated, Pushed or Failed

When a push fails

If ZATCA rejects a document, its status in Zoho Books changes to Failed and the reason is shown. The usual causes are a missing Arabic name, an incomplete national address, or a wrong VAT number on the customer.

Correct the detail and push the document again. Check the Failed list every day in your first weeks, because a standard invoice that has not been cleared should not be sent to the customer.

A short go-live checklist

Run through this list before the first live invoice after your integration date.

• Organisation address and VAT number checked
• Top customers and items have Arabic names and full addresses
• Zoho Books appears in the Fatoora list of solutions and devices
• Push permission given only to the right roles
• One test invoice pushed, its status shows Pushed and the PDF shows the QR code
• A named person checks the Failed list each day

Getting help with Zoho Books in Saudi Arabia

FBS Advisory is a Certified Zoho Finance Partner. Our team supports businesses in Saudi Arabia online: we set up Zoho Books for ZATCA e-invoicing, enter Arabic details for customers and items, connect to Fatoora and train your team. Your VAT returns and other filings stay with your licensed accountant or tax agent in the Kingdom.

Book a free Zoho consultation below and tell us your integration date.