Qoyod: Your Path to ZATCA E-Invoicing Compliance in KSA

The business landscape in Saudi Arabia is changing. With the enforcement of the ZATCA (Zakat, Tax and Customs Authority) e-invoicing mandate, a new era of digital compliance has begun. This is no longer an option, it’s a legal requirement that affects every business, regardless of its size. The transition from traditional paper invoices to a fully digital, standardized system can seem complex, but it doesn’t have to be.

The right e-invoicing software can turn this compliance challenge into a growth opportunity, helping you streamline your operations, ensure accuracy, and stay ahead of the curve. While many international solutions exist, what Saudi businesses truly need is a platform that is not just compliant but also built for the local market, one that understands the unique needs and regulations of the Kingdom.

This guide will show you how to navigate this new era of digital compliance, and why Qoyod stands out as the ultimate choice for businesses seeking a powerful, easy-to-use, and fully ZATCA-compliant solution.

ZATCA Mandate and the Transition to Electronic Invoices

The transition from a paper-based system to a digital one is being implemented in two main phases:

• Phase 1: Generation Phase (started December 4, 2021): This phase required all businesses subject to VAT to generate and save e-invoices electronically. They were no longer permitted to issue paper or scanned invoices. The key here was the generation of the electronic document itself, which had to be in a specific format with a unique QR code. The invoices were not required to be sent to ZATCA at this stage.

• Phase 2: Integration Phase

(started January 1, 2023, and implemented in waves): This phase is the more advanced and technical part of the mandate. It requires businesses to integrate their e-invoicing solutions directly with the ZATCA FATOORAH portal. This means that every e-invoice, credit note, and debit note must be submitted and validated by ZATCA in near real-time. This real-time validation, known as the “clearance” model, is a crucial step for business-to-business (B2B) transactions, ensuring accuracy and immediate compliance.

Why Businesses Need a Reliable, Local Solution?

For many businesses, especially small and medium-sized enterprises (SMEs), navigating these technical and legal complexities can be a significant challenge. This is where a reliable, local solution becomes essential for several reasons:

• Direct ZATCA Compliance: While many global accounting platforms exist, they may not be fully aligned with ZATCA’s specific technical requirements, such as the XML invoice format, cryptographic stamps, and the real-time API integration. A local solution is built from the ground up to be 100% compliant with these rules.
• Bilingual Support and Local Knowledge: Saudi businesses operate in both Arabic and English. A local solution offers full bilingual support, and its customer service team understands the local business environment, culture, and specific regulations. This can be invaluable when facing technical issues or needing clarity on compliance rules.
• Seamless Integration: A local provider often has existing integrations with other popular local business tools, such as e-commerce platforms and point-of-sale (POS) systems, making the transition much smoother for businesses already using those services. This is not always the case with international software.

In short, a local solution like Qoyod provides not just software, but a complete compliance partner that helps businesses avoid penalties, streamline their operations, and focus on growth.

What Makes an E-Invoicing Solution “The Best” in Saudi Arabia?

When evaluating e-invoicing software in the Kingdom, businesses are often faced with a sea of options. To cut through the noise and find a solution that truly adds value, you need a set of clear, non-negotiable criteria. The best platforms go beyond simple invoice generation; they become a true partner in your business’s compliance and growth.

Here’s a breakdown of the key features to look for:

1. Mandatory ZATCA Compliance: The Non-Negotiable Requirement

This is the most critical factor. The best e-invoicing software must be fully compliant with both Phase 1 (Generation) and Phase 2 (Integration) of the ZATCA mandate. This includes:

• Generating invoices with a unique cryptographic stamp and QR code.
• Ensuring the invoice is in the specific XML format required by ZATCA.
• Integrating directly with the ZATCA FATOORAH platform to clear and report invoices in real-time, as required for Phase 2.

A non-compliant system is not just a risk; it’s an invitation for penalties and disruptions. For this reason, choosing an accredited solution that has a proven track record of meeting ZATCA’s standards is paramount.

2. Ease of Use & Local Support

For any business, especially SMEs, complex software can be a major barrier to adoption. The best solutions are intuitive and easy to use, allowing employees to create compliant invoices with just a few clicks. But beyond the user interface, local support is invaluable. An ideal solution offers:

• A user-friendly interface in both Arabic and English, catering to a diverse workforce.
• A dedicated support team that understands the intricacies of the local regulations and can provide assistance quickly, without international time zone delays.

3. Seamless Integration with Your Existing Systems

An e-invoicing solution shouldn’t operate in a vacuum. It should integrate smoothly with your other business tools to create a cohesive ecosystem. The top-tier software platforms can connect with a wide range of:

• Point-of-Sale (POS) systems for retail and F&B businesses.
• E-commerce platforms to automate invoicing for online sales.
• Payment gateways to simplify the reconciliation process.

This level of integration eliminates manual data entry, reduces errors, and saves countless hours of administrative work.

4. Scalability: The Ability to Grow with Your Business

As your business expands, your financial needs will become more complex. The right software should be able to scale with you, handling a growing volume of transactions, invoices, and users without sacrificing performance or increasing costs disproportionately. Whether you’re a startup or a large enterprise, your e-invoicing solution should be a long-term investment, not a temporary fix.

5. Uncompromising Security and Data Privacy

Financial data is among your most sensitive information. A great e-invoicing platform must provide robust security measures to protect your data from unauthorized access, cyber threats, and breaches. Look for a solution that:

• Uses bank-grade encryption to protect all data.
• Has clear policies on data storage and privacy, in line with local regulations.
• Offers features like user-access controls to define who can view and edit financial information within your organization.

Introducing Qoyod: The #1 Choice for Saudi Businesses

While many global accounting platforms offer e-invoicing as an add-on, Qoyod was built in Saudi Arabia, for Saudi businesses. This local-first approach gives it a fundamental advantage, making it the top choice for thousands of businesses across the Kingdom. Qoyod isn’t just a piece of software; it’s a dedicated partner committed to helping your business thrive in the local market.

A Fully ZATCA-Compliant Solution: From A to Z

Qoyod provides a complete e-invoicing solution that is fully accredited by the Zakat, Tax, and Customs Authority (ZATCA). It is engineered to handle every compliance requirement, ensuring you are protected from penalties and operational disruptions. This includes:

• Real-time Integration: Qoyod is fully compliant with Phase 2 of the ZATCA mandate, offering seamless, real-time integration with the FATOORAH platform. This means your invoices are automatically submitted and validated by the authorities the moment they are issued.
• Secure & Compliant Invoices: The software automatically generates e-invoices that meet all technical specifications, including the required XML format, unique cryptographic stamps, and a secure QR code on every invoice.
• Immutable Records: Qoyod ensures that all issued invoices are tamper-proof and cannot be deleted or modified, which is a critical ZATCA requirement for maintaining an accurate audit trail.

Designed for the Saudi Market: A Local Edge

Unlike international competitors, Qoyod’s foundation is deeply rooted in the Saudi business environment. This local focus translates into several key benefits:

• Bilingual and Local Support: The platform and its dedicated customer support are fully bilingual in Arabic and English, ensuring you can get immediate, clear assistance from a team that understands the local regulations, culture, and specific accounting standards.
• User-Friendly Interface: The platform’s design is simple and intuitive, requiring no prior accounting experience. This makes it easy for you and your staff to get started and manage finances efficiently.
• Local Ecosystem Integrations: Qoyod is built to connect with the tools and services you already use in Saudi Arabia. This is crucial for creating a smooth, integrated workflow.

Key Features of Qoyod’s E-Invoicing

Beyond just compliance, Qoyod offers a suite of powerful features that simplify your daily operations:

• Automated Invoice Generation: Say goodbye to manual data entry. Qoyod’s automation features allow you to create, send, and manage your invoices quickly and accurately. You can even set up recurring invoices for your regular customers, saving you time and effort.
• Real-time Reporting: Gain instant financial insights with Qoyod’s real-time reporting. Track your sales, monitor payments, and get a clear picture of your business’s financial health with customizable, easy-to-read dashboards and reports.
• Mobile App & Cloud Access: Manage your business from anywhere. With Qoyod’s cloud-based platform and dedicated mobile app for iOS and Android, you can issue invoices, track sales, and access essential financial data on the go, giving you complete flexibility.
• Integration with Other Business Tools: Qoyod’s open API allows for seamless integration with a variety of business tools popular in the Kingdom, including e-commerce platforms like Shopify and various Point-of-Sale (POS) systems. This means your sales and inventory data can be synchronized automatically, ensuring your records are always up-to-date.

How to Get Started with Qoyod: A Simple Step-by-Step Guide

Transitioning to e-invoicing doesn’t have to be complicated. With a user-friendly platform like Qoyod, the path to ZATCA compliance is straightforward and requires just a few simple steps. You’ll be ready to issue your first e-invoice in no time.

Step 1: Sign up & Set Up Your Account

The first step is to create your free Qoyod account. The process is quick and requires no credit card details upfront, allowing you to test the platform for 14 days and explore its features risk-free. Once your account is created, you can begin to enter your basic business information to get started.

Step 2: Configure Your ZATCA E-Invoicing Settings

Qoyod simplifies the ZATCA integration process dramatically. The system is designed to handle the complex technical requirements on your behalf. Simply navigate to the e-invoicing settings within your dashboard. From there, you will be guided to link your account with ZATCA’s system to obtain the necessary cryptographic stamp. This one-time setup ensures all your future invoices are compliant and automatically validated.

Step 3: Start Issuing Your First Invoice

Once your settings are configured, you are ready to start. Qoyod’s intuitive interface makes creating an e-invoice as simple as a few clicks:

• Select “Create New Invoice” from your dashboard.
• Fill in the details of your customer, the products or services provided, and the total amount.
• Click “Save and Approve” to generate a fully compliant, ZATCA-ready invoice with its unique QR code and cryptographic stamp.

The invoice is then ready to be shared with your client and is automatically reported to ZATCA, ensuring you are fully compliant and your financial records are secure.

FAQs About E-Invoicing in Saudi Arabia (and How Qoyod Helps)

The transition to e-invoicing can raise many questions for business owners. Here are some of the most common inquiries and how a solution like Qoyod provides the answers.

What is the ZATCA mandate? The ZATCA mandate is a legal requirement from the Zakat, Tax and Customs Authority in Saudi Arabia for all VAT-registered businesses to shift from manual invoices to a fully digital system. This initiative, called the FATOORAH project, aims to combat tax evasion and improve transparency. It is being rolled out in two phases: Phase 1 (the Generation phase) and Phase 2 (the Integration phase).

When does my business need to comply? Phase 1 has been mandatory for all applicable businesses since December 4, 2021. Phase 2 compliance is being rolled out in waves, with deadlines based on your company’s annual revenue. ZATCA notifies businesses at least six months in advance of their specific deadline, so it’s essential to stay informed to avoid penalties.

Is Qoyod a ZATCA-approved solution? Yes, Qoyod is a ZATCA-compliant and approved solution that meets all the technical and legal requirements for both Phase 1 and Phase 2 of the e-invoicing mandate. It provides the cryptographic stamps, QR codes, and real-time integration necessary to ensure your business stays compliant and avoids any issues.

Can I use Qoyod for my POS or e-commerce store? Yes. Qoyod offers seamless integration with various business tools to create a unified system. It has a dedicated POS app for retail and a connector for popular e-commerce platforms like Shopify and Zid. This allows your sales data to be automatically synchronized with your accounting records, ensuring accuracy and real-time reporting.

Conclusion: Take Control of Your Finances with Qoyod

The shift to e-invoicing is a significant step, but with the right partner, it can be a smooth and beneficial transition. Qoyod simplifies this journey by providing a comprehensive, locally-built solution that not only ensures full ZATCA compliance but also offers powerful features to streamline your financial operations. From automated invoicing to real-time reporting and seamless integrations, Qoyod empowers you to manage your business with confidence and clarity. Don’t let compliance be a source of stress.

Take control of your finances and ensure a seamless future for your business. Start your free 14-day trial with Qoyod today and experience the difference.