01 / ZATCA Phase 2
Fatoorah e-invoicing mandate
Applies above the SAR 40M turnover threshold, expanding in waves. ERPNext produces ZATCA Phase 2 UBL 2.1 XML with QR codes. CSID pathway documented in scope.
Saudi Arabia · ZATCA Phase 2 · Nitaqat
ZATCA Phase 2 requires your invoicing system to talk to Fatoorah. Most ERP setups cannot.
ERPNext configuration for Saudi businesses. ZATCA-compliant e-invoice output. Nitaqat workforce tracking. Vision 2030 operations foundation.
The compliance triggers
Three regulatory pressures already on your calendar.
02 / Nitaqat
Saudization workforce quotas
Saudi Labour Law requires minimum Saudi national headcount. Nationality captured at employee record. Saudization reports for Nitaqat band verification.
03 / VAT 15%
ZATCA VAT return reporting
Tax templates for 15% standard, zero-rated, and exempt categories. VAT return data structured for ZATCA filing.
What we build for Saudi operators
One configured system. ZATCA, Nitaqat, GOSI, multi-branch.
01 / Invoicing
ZATCA Phase 2 XML
UBL 2.1 XML invoices meeting ZATCA Phase 2 structure. QR codes on every invoice. CSID registration steps documented.
02 / Workforce
Nitaqat reports
Nationality at the HR record. Workforce composition for Nitaqat band verification. Headcount tracked on a rolling basis.
03 / VAT
15% VAT configuration
Sales and purchase tax templates. Reverse charge applied where required. VAT return formatted for ZATCA filing.
04 / Currency
SAR and USD
SAR base, USD and other currencies supported. Multi-currency AR, AP, and bank reconciliation handled natively.
05 / Payroll
GOSI payroll
9% employee, 12% employer for Saudis. 2% employer for expats. Posted to GOSI payable accounts on every run.
06 / Branches
Multi-branch operations
Riyadh, Jeddah, Dammam, Free Zone. Branch cost centres, intercompany rules, group consolidation.
Reference engagements
The nearest comparables to a Saudi implementation.
Kuwa Advisory has not yet published a dedicated Saudi case. The two engagements below are the closest reference points: one Gulf-region distribution business, one European multi-entity group. Both share structural patterns with a typical Saudi build.
Gulf Region · Distribution
Gulf Medica LLC, UAE
Medical supply distribution. VAT template configuration, multi-currency receivables, and inventory across the distribution network. The engagement failed at adoption, not at configuration. The published case study documents exactly what went wrong and the structural rules that now govern every Gulf engagement: process mapping is not optional, the operations team signs off before configuration begins.
Read the Gulf Medica case study →Europe · Multi-Entity
Aurelius Group BV, Netherlands
Fashion group with multiple legal entities, in progress. Multi-company chart of accounts, intercompany transaction rules, consolidated reporting across the group. The structural pattern translates directly to a Saudi business operating a mainland entity and a Free Zone entity, or a holding company across multiple branches.
See all case studies →
The next Saudi engagement is structured around what these two taught us: precise process mapping before configuration, and clean entity separation from day one. If your business is at the point of buying an ERP system, this is the call you want to take.
Questions from Saudi operators
What we hear most from CFOs and Finance Directors in Saudi Arabia.
ERPNext can be configured to produce UBL 2.1 XML invoices meeting ZATCA Phase 2 structural requirements. The cryptographic stamp (CSID) requires registration with ZATCA's Fatoorah platform, and that registration is done by the business, not by Kuwa Advisory. We configure the invoice structure and document the CSID registration steps.
GOSI is configured as Salary Components: 9% employee deduction for Saudi nationals on applicable earnings, 12% employer contribution for Saudi nationals, and 2% employer contribution for expatriates. Components post to the correct GOSI payable accounts on each payroll run.
Yes. The ERPNext HR module stores employee nationality at the employee record level. We configure a custom report, or use the employee list filtered by the nationality field, to produce the workforce composition data Nitaqat requires. HRDF and specific ministry portal submissions remain a manual step performed by the client team.
ERPNext has a native Arabic translation. RTL layout and Arabic labels are available in the system interface. Print formats can be configured in Arabic. We enable the Arabic locale and test critical print formats during the implementation.
Scope-dependent. A focused trading or distribution company with standard modules typically runs 8 to 14 weeks from process mapping to go-live. We scope precisely after the discovery call.
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