ZATCA Fatoorah Phase 2 in KSA: Implementation Guide for Business Central and LS Central
What Phase 2 actually requires, which wave you are in, and how Saudi businesses ship a clean ZATCA integration on Microsoft platforms.
Where ZATCA Phase 2 Stands in 2026
Phase 2 rolled out in waves from 2023 onward, starting with the largest VAT-registered taxpayers and extending down to mid-market and smaller businesses through 2024–2026. By 2026, the bulk of KSA B2B taxpayers are in scope. ZATCA's Fatoora portal is the clearing point: every standard tax invoice must be cleared in near-real-time, every simplified invoice (B2C) must be reported within 24 hours, and every credit/debit note follows the same path.
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Real-Time
B2B tax invoice clearance via Fatoora API
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24 hr
B2C simplified invoice reporting window
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XML+QR
UBL-based format with QR code on print
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Integration is the easy part — process is where projects stall
Most KSA businesses approach ZATCA Phase 2 as a software project. The actual blocker is process: customer master TRN cleanliness, tax-code consistency, credit-note workflow, exception handling for cross-border supplies. Get those right and the technical integration finishes in weeks.
Businesses on Business Central already have the structured tax model; the project becomes wiring + parallel running.
Six-Step Implementation Plan
- Wave confirmation + TRN cleanse. Confirm your ZATCA wave (Phase 2 wave bracket) and clean the customer + supplier TRN master.
- Tax-code mapping. Map BC's VAT posting groups to ZATCA's invoice tax categories (standard 15%, zero-rated, exempt, out-of-scope).
- Solution onboarding with ZATCA. Register the BC or LS Central solution with the Fatoora portal — solution onboarding produces the cryptographic stamp identifier.
- Invoice schema configuration. Map BC invoice fields into the UBL invoice format that ZATCA accepts — line items, tax breakdown, supplier and customer blocks.
- 60-day parallel run. Issue invoices through both flows; reconcile every variance before cutover.
- Cutover and post-go-live monitoring. Daily dashboard of cleared invoices, rejected invoices, retry queues, and reconciliation ageing.
B2B Tax Invoice vs B2C Simplified Invoice
Why Implement with Novasoft?
Novasoft has delivered ZATCA Phase 2 readiness for KSA businesses since the first wave in 2023, both on Business Central and on LS Central retail POS. We work with ZATCA-approved solution partners and ship the integration via our implementation practice with ongoing managed support after go-live. Authoritative reference: the ZATCA portal.
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Wave-Aware
Confirmation, mapping, onboarding by wave.
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B2B + B2C
BC tax invoices + LS Central POS simplified.
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Continuous
Post-go-live dashboards, not a one-shot project.
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Start Your ZATCA Phase 2 Readiness
Book a 30-minute readiness check. We will map your current invoice flow against ZATCA Phase 2 and flag the gaps before they become fines.
Book Free Assessment Business CentralSources
- ZATCA — official portal (Saudi Arabia). zatca.gov.sa
- Microsoft Learn — Business Central e-documents. learn.microsoft.com — e-documents in BC
Last updated May 2026