A ZATCA-compliant ERP — Fatoora phase 2 — for your Saudi operations.
ERPNext implementation compliant with Saudi regulation: ZATCA phase 2 e-invoicing (UBL 2.1 XML, QR code, Fatoora platform integration), 15% VAT, bilingual Arabic-English interface, GOSI payroll and end-of-service with Frappe HR.
Business context and modernization stakes.
ZATCA phase 2: integration, not just format
Phase 1 (December 2021) required generating electronic invoices. Phase 2 — Fatoora — goes further: every invoicing system must be integrated with the ZATCA platform, with real-time clearance of B2B invoices and reporting of B2C invoices, in cryptographically signed UBL 2.1 XML. The rollout proceeds in waves by taxable revenue — wave 24 (above SAR 750,000) must comply by June 30, 2026. The Frappe ecosystem offers dedicated compliance apps, including an open-source one, which we install, configure and test on the ZATCA simulation environment.
The Saudi social regime in Frappe HR
A Saudi employer contributes to GOSI (social insurance) for Saudi and expatriate employees under distinct rules, pays salaries within the wage protection framework, and accrues the end-of-service benefits mandated by labor law. Frappe HR models these rules as formula-based salary structures: every contribution and accrual is visible, traceable and adjustable when regulation changes. We operate in co-delivery with our Riyadh partner for the local relationship.
Invoicing not integrated with Fatoora, proprietary suites or manual processes
ERPNext + ZATCA compliance app: Fatoora phase 2, 15% VAT, Frappe HR
Challenges
- Integrate invoicing with the Fatoora platform: signed UBL 2.1 XML, UUID, chained hash and QR code on every invoice.
- Distinguish B2B flows (real-time clearance) from B2C flows (reporting) as required by phase 2.
- Invoice bilingually in Arabic and English with 15% VAT correctly broken down.
- Run payroll compliant with Saudi obligations: GOSI contributions, wage protection, end-of-service benefits.
ATLAS approach
- Installation of a proven ZATCA compliance app from the Frappe ecosystem (including the open-source KSA Compliance app), with device onboarding on Fatoora.
- Clearance and reporting tests on the ZATCA simulation environment before any go-live.
- 15% VAT configuration, bilingual Arabic-English invoice templates, Arabic (RTL) ERPNext interface for local teams.
- Frappe HR salary structures for GOSI contributions and end-of-service benefit calculation.
Expected outcomes
- Invoices accepted by Fatoora — signed, timestamped, QR-coded — without re-entry.
- Phase 2 compliance tested in simulation before your wave's deadline.
- A bilingual interface adopted by local teams and headquarters.
- GOSI and end-of-service payroll computed in Frappe HR, auditable line by line.
What decision-makers ask about this path.
Is ERPNext compliant with ZATCA phase 2?+
Yes, through ZATCA compliance apps from the Frappe ecosystem — including an open-source app dedicated to Saudi compliance. They handle signed UBL 2.1 XML generation, QR codes, device onboarding and the Fatoora exchange (B2B clearance, B2C reporting). We test compliance on the ZATCA simulation environment before go-live.
Does ERPNext work in Arabic?+
Yes. The ERPNext interface is available in Arabic with right-to-left display, and invoice templates can be bilingual Arabic-English, as Saudi practice requires.
How do you operate in Saudi Arabia?+
In co-delivery: our Riyadh partner carries the local client relationship, and delivery runs from our Tunis center, with Arabic- and English-speaking teams in a close timezone.
Does this modernization path match your context?
We frame the trajectory, the budget, and the deliverables in a first thirty-minute conversation. A short POC can be proposed before committing to the full program.
Start this path →