ZATCA Phase 2 setup in Business Central is straightforward once you know the right order. Here's the walkthrough we run on every Saudi deployment — from prerequisites to production cutover.
Prerequisites
Before starting ZATCA Phase 2 setup in Business Central, confirm:
- BC version 22.0 or later (cloud or on-premise)
- ZATCA Taxpayer Portal account active
- Cryptographic Stamp Identifier (CSID) generated from ZATCA portal
- Standard BC invoice templates configured (Sales Invoice, Sales Credit Memo, Service Invoice)
- VAT setup complete with valid Saudi VAT registration number
Step 1 — Install the Novasoft KSA e-Invoicing extension
From the BC tenant administration centre:
- Open Extension Management → Manage Extensions
- Search Microsoft AppSource for 'Novasoft KSA e-Invoicing'
- Install (requires environment admin permissions)
- Wait 5–10 minutes for the extension to register and synchronise
- Open the Assisted Setup wizard 'Configure KSA e-Invoicing'
Step 2 — Configure cryptographic stamping
The CSID generated in the ZATCA portal needs to be imported into BC:
- Open the KSA e-Invoicing setup page
- Paste the CSID PEM certificate (the public key part)
- Upload the corresponding private key in PFX or P12 format
- Set the expiry monitoring threshold (default 30 days before expiry)
- Save and click 'Test cryptographic operations' to verify a sample sign + verify cycle
Step 3 — Map BC invoice fields to ZATCA invoice fields
ZATCA Phase 2 invoices follow the UBL 2.1 standard with KSA-specific extensions. The extension maps automatically but verify these critical fields:
- Issuer VAT registration → Company Info VAT registration
- Customer VAT registration → Customer Tax Registration No.
- Invoice type (01 for B2B Standard, 02 for B2C Simplified)
- Payment means code (10 cash, 30 transfer, 48 card etc.)
- Line-item tax category (S standard, Z zero, E exempt, O out of scope)
Step 4 — Test in the FATOORA sandbox
ZATCA provides a sandbox FATOORA environment. From BC:
- Set the extension to Sandbox mode
- Post 3 sample invoices (a B2B standard, a B2C simplified, a credit note)
- Confirm each receives a successful response with QR code and cleared status
- Test edge cases: multi-VAT-rate invoice, partial payment, foreign currency conversion
- Review the FATOORA portal to see the same invoices arriving
Step 5 — Production cutover
Once sandbox testing passes:
- Switch the extension to Production mode
- Re-import the production CSID (separate from sandbox CSID)
- Issue the first 3 real production invoices and monitor in real time
- Confirm in FATOORA portal that each appears within 24 hours
- Train your AP/AR teams on the new QR code and stamp validation workflow
Ongoing monitoring
The extension dashboard shows real-time queue status, failures and CSID expiry. We recommend a weekly review for the first month, then monthly. NovaCare AMC includes ZATCA monitoring as a standard service.
Frequently asked questions
Does the extension handle ZATCA exceptions automatically?
Yes. Network failures, invalid VAT IDs, and FATOORA rejections are queued and retried. The extension dashboard surfaces any persistent failure for manual review.
What if we need to issue an invoice before going through FATOORA?
Not allowed under ZATCA Phase 2. Every taxable B2B invoice must be stamped and cleared before being delivered to the customer. The extension prevents posting if FATOORA is unreachable beyond the timeout threshold.
How do we handle invoice corrections?
Credit notes flow through the same pipeline with a different invoice type code. The extension automatically references the original invoice's UUID.
Does it work with LS Central POS?
Yes — LS Central POS transactions flow through the BC e-invoicing engine. LS Central + ZATCA is the most common Saudi retail setup.
How are we notified of regulator changes?
Novasoft maintains the extension and pushes updates via AppSource. Major regulator changes are communicated 30 days in advance through NovaCare release notes.
What's the typical setup time?
1 day for an existing BC customer with valid CSID. 5 days if onboarding from scratch including CSID generation and sandbox cycle.
Where to go next
Read the full overview of KSA ZATCA Phase 2 extension. For a deeper dive into related capability, see ZATCA Phase 2 cost breakdown. When you're ready to talk specifics, book a 30-minute call with a Novasoft consultant.