Digital pro is an accounting software approved by the Zakat, Tax and Customs Authority

Choosing an accounting software approved by the Zakat, Tax and Customs Authority is not just about issuing an invoice with a QR code, but rather about the system's ability to issue, store, and share electronic invoices and credit/debit notes in the required format, and to integrate all invoice-issuing units with the Fatoora portal when the establishment enters Phase Two.

Below, we will explain the meaning of ZATCA-compliant accounting software, the requirements for Phase Two integration with ZATCA, how to verify the solution provider, and the most important features to test before subscribing, along with the role of DigitalPro in linking e-invoicing with accounting, sales, inventory, and POS systems.

What is the Zakat, Tax and Customs Authority (ZATCA)?

The Zakat, Tax and Customs Authority is the Saudi government entity responsible for managing Zakat, tax, and customs operations in accordance with applicable laws and regulations, as well as assisting taxpayers in achieving compliance and monitoring the fulfillment of their Zakat, tax, and customs obligations.

The Authority was established in its current form following the merger of the General Authority of Zakat and Tax with the General Customs Authority under the name Zakat, Tax and Customs Authority. Its vision is to protect the nation, manage Zakat, tax, and customs, and facilitate trade effectively with a primary focus on the beneficiary.

In the field of e-invoicing, the Authority manages the "Fatoora" system, which converts the process of issuing invoices, debit notes, and credit notes from paper or manual documents into structured electronic data that can be issued, saved, processed, and shared according to specified requirements.

Therefore, searching for the best ZATCA approved accounting software must start with understanding the Authority's requirements, rather than simply comparing invoice templates or subscription prices.

Functions of ZATCA

The responsibilities of the Zakat, Tax and Customs Authority include collecting Zakat, taxes, and customs duties, assisting taxpayers in fulfilling their obligations, monitoring compliance, and raising awareness about relevant laws and regulations.

Among the most prominent tasks of the Authority:

• Collecting Zakat, taxes, and customs duties in accordance with regulations.
• Providing services and guidance to help taxpayers remain compliant.
• Monitoring taxpayers and verifying the fulfillment of legal obligations and dues.
• Promoting voluntary compliance with Zakat, tax, and customs requirements.
• Raising awareness about regulations, decisions, and instructions.
• Managing registration, returns, and audits related to Value Added Tax (VAT).
• Conducting field visits and regulatory control procedures.
• Managing the e-invoicing system.
• Applying fines and legal measures in cases of non-compliance.
• Cooperating with local and international entities within its domain.

The Authority does not choose the accounting system on behalf of the establishment; rather, it sets the technical and regulatory requirements that the used solution must comply with. The establishment remains fully responsible for the accuracy of the data, connecting all invoicing devices, issuing documents within the specified timelines, and properly storing and sharing them.

Meaning of ZATCA Approved Accounting Software

The term "ZATCA approved accounting software" in commercial usage refers to an accounting software or invoicing system that supports the e-invoicing requirements issued by the Zakat, Tax and Customs Authority and can be configured to issue, store, and integrate invoices with the Fatoora platform.

However, an important point must be noted: the accounting system used must strictly adhere to e-invoicing requirements, which is provided by Digital Aamal Company as an approved solution provider in the list of e-invoicing service providers.

Therefore, three key terms should be distinguished:

The official Authority page for the solution providers list clearly states that the list is indicative and non-binding, and that it does not constitute an official certification or endorsement by the Authority for the technical solutions offered by the listed providers.

Therefore, a correct evaluation of any software must answer the following questions:

• Does it support the phase currently applicable to my business?
• Does it generate both required invoice types?
• Does it support XML format and the necessary technical fields?
• Can it connect all POS devices and branches?
• Does it perform clearance and reporting based on the invoice type?
• Does it retain invoices and audit logs?
• Does it prevent deleting or modifying invoices post-issuance?
• Does it manage debit and credit notes correctly?
• Does it provide updates when the Authority's requirements change?

Importance of Choosing a ZATCA Approved Accounting Software

The importance of choosing ZATCA-compliant software lies in safeguarding the invoicing cycle from errors, linking sales directly with accounts and taxes, and reducing the risks of issuing non-compliant documents or failing to share invoices on time.

The right system helps to:

• Issue electronic invoices with all required mandatory fields.
• Accurately calculate Value Added Tax (VAT).
• Differentiate between standard tax invoices and simplified invoices.
• Generate sequential invoice numbers and identification codes.
• Generate QR codes according to technical specifications.
• Store invoice and credit/debit note data securely.
• Prevent unlawful alterations after issuance.
• Link invoices with sales, inventory, and customer management.
• Configure invoice-issuing units properly.
• Send or report invoices to the Fatoora platform.
• Track accepted, rejected, and warned invoice status notifications.
• Generate comprehensive reports that assist accountants in auditing.

An integrated system also reduces discrepancies between POS software and financial accounting software, as a single sales transaction can seamlessly update the invoice, customer account, inventory levels, tax liability, and financial reports simultaneously.

Regarding penalties for failing to integrate with ZATCA, they should not be treated as a fixed single fine. According to the published violation classification by ZATCA, the first instance of failing to connect all invoicing systems and devices results in a warning. Fines begin upon repeated violations at SAR 10,000, escalating gradually to SAR 15,000, SAR 20,000, SAR 30,000, SAR 40,000, and up to SAR 50,000 for repeated non-compliance beyond six instances.

Reference must always be made to the official active classification and specific violation status prior to determining any financial liabilities.

Official examples illustrate that connecting only two out of three POS cash registers is considered non-compliance with the requirement to connect all invoicing devices, even if the remaining units are properly integrated.

Core Requirements for Phase Two of E-Invoicing and Its Business Impact

Phase Two is the Integration Phase, requiring establishments to connect their e-invoicing systems with ZATCA's Fatoora platform, generating structured electronic invoices containing all mandated fields and security features.

Phase Two implementation began gradually on January 1, 2023, with ZATCA selecting target groups based on specific revenue criteria and notifying designated establishments at least six months prior to their mandatory integration date.

Key requirements of Phase Two include:

• Integrating the invoicing solution with the Fatoora portal.
• Configuring all invoicing units and devices.
• Generating XML files according to technical specifications.
• Supporting PDF/A-3 format with embedded XML where applicable.
• Generating a Universally Unique Identifier (UUID).
• Generating a sequential invoice counter.
• Linking each invoice to the previous invoice using a cryptographic hash function.
• Applying cryptographic stamps and required security features.
• Generating QR Codes containing expanded data elements.
• Obtaining clearance for Standard Tax Invoices prior to sharing with buyers.
• Reporting Simplified Invoices within the specified timeframes.
• Storing response statuses returned by the Fatoora portal.
• Handling system errors, warnings, and rejections properly.
• Issuing electronic credit and debit notes compliant with guidelines.
• Disabling tampering functions, data deletion, or sequence resetting.

The impact of Phase Two varies depending on operational structure; a business operating a single POS terminal differs significantly from a multi-branch chain operating dozens of POS devices. Therefore, a complete audit of all invoice-issuing endpoints is essential before commencing integration.

Practical integration steps with ZATCA include:

1. Receiving the targeted integration notification from ZATCA.
2. Assessing e-invoicing software readiness.
3. Updating company and branch details.
4. Auditing all invoice-issuing devices and endpoints.
5. Generating One-Time Passwords (OTP) from the Fatoora portal.
6. Configuring each invoice-issuing device or unit.
7. Conducting compliance tests and sending test invoices.
8. Obtaining production environment credentials.
9. Initiating live clearance for standard invoices and reporting for simplified invoices.
10. Monitoring acceptance, rejection, and error statuses continuously.

Integration also directly impacts employee workflows; cashiers, accountants, and system administrators must be trained on handling returns, cancellations, credit notes, and system downtime, rather than modifying or deleting original invoices.

Essential Features Required in Saudi Approved Accounting Software

Suitable accounting software must combine technical compliance with the practical operational and accounting capabilities required by the business. E-invoicing compatibility alone does not automatically make software adequate for managing general accounts, inventory, and branches.

Key essential features include:

Support for Standard Tax Invoices and Simplified Invoices

The system must distinguish between Standard Tax Invoices (primarily B2B transactions) and Simplified Tax Invoices (primarily B2C sales directly to consumers).

Comprehensive VAT Management

The software must support:

• Configuring tax rates and categories.
• Calculating tax at both line-item and invoice levels.
• Handling itemized and global discounts properly.
• Displaying totals accurately.
• Handling tax-exempt or zero-rated supplies when applicable.
• Generating regulatory tax reports.
• Issuing compliant debit and credit notes.

Full Support for Phase Two Technical Requirements

The system should seamlessly handle XML output, UUID generation, cryptographic stamps, QR Codes, standard invoice clearance, and simplified invoice reporting.

Multi-Unit and Device Integration

The system must be capable of onboarding and configuring all cashier terminals, branch systems, servers, and sub-units issuing invoices according to company infrastructure.

Anti-Tampering Measures

Software must strictly prohibit deleting issued invoices, modifying post-issuance invoice data directly, resetting invoice counters, or altering sequences in a manner that compromises audit log integrity.

Credit and Debit Note Management

When returns or adjustments occur, original invoices must remain untouched; instead, a linked credit or debit note must be generated stating the explicit reason for adjustment.

Data Retention and Backup Protocols

The system must securely retain invoices, debit/credit notes, and technical payload logs, offering reliable mechanisms for automated backup and data recovery.

User Roles and Permission Controls

Clear permissions should be defined for cashiers, accountants, branch managers, and system administrators, complete with user-specific activity audit logs.

Error and Exception Handling

The system must display real-time transmission feedback from the Fatoora portal, including:

• Accepted.
• Accepted with warnings.
• Rejected.
• Pending due to connectivity issues.

It must also provide clear procedures for re-transmission and error correction without generating duplicate records.

Integration with Core Accounting and Inventory

It is optimal to use an accounting system that seamlessly connects invoicing with sales ledgers, inventory levels, customer accounts, and payment channels, eliminating the need for separate invoicing tools requiring manual data entry.

System Scalability

Ensure the software can easily accommodate growth in:

• User licenses.
• POS hardware units.
• Warehouses.
• Branch locations.
• Multiple company profiles or commercial registers.
• Integrations with e-commerce stores or payment gateways.

Support and Ongoing Updates

Technical requirements evolve and Phase Two expands progressively; therefore, solution providers must provide continuous technical updates and technical support to assist businesses during onboarding and error resolution.

How to Verify ZATCA Approval for Software

Verification of solution providers can be completed via ZATCA's official E-Invoicing Solution Providers Directory using the following link: Solution Providers Directory, searching for "أعمال رقمية" (Digital Aamal), and checking the qualification phase, legal company name, and provided solution scope.

Follow these step-by-step verification instructions:

1. Access the official ZATCA web portal.
2. Navigate to the E-Invoicing section.
3. Open the Solution Providers Directory.
4. Check either the Phase One or Phase Two provider listings.
5. Search using the provider's registered legal entity name (Digital Aamal / أعمال رقمية).
6. Match provider records against your proposal or contract.
7. Request clarification regarding the exact software solution name and version.
8. Verify that all required features are included in your deployment.
9. Request a live operational demonstration of the integration setup.
10. Test issuing a standard invoice, a simplified invoice, and a credit note.

Digital Aamal is approved within the list of e-invoicing service providers

Verbal assurances such as "ZATCA compliant" are insufficient; test the system thoroughly by verifying:

• Issuing a simplified invoice and scanning its QR code.
• Transmitting an invoice payload to the portal.
• Generating a standard tax invoice.
• Executing a return and issuing a credit note.
• Displaying clearance or reporting acceptance/rejection status.
• Adding and registering a new POS terminal.
• Simulating internet connectivity outages.
• Extracting generated XML files.
• Reviewing transmitted invoice logs.
• Inspecting user logs associated with invoice issuance.

Discover: Approved accounting system listed under the e-invoicing solution providers directory.

Who Needs a ZATCA Approved Accounting Software?

All business entities subject to the E-Invoicing Regulation must adopt a compliant technical solution that enables them to issue, store, and integrate electronic invoices and debit/credit notes in accordance with their designated phase requirements.

This typically includes:

• VAT-registered corporations and enterprises.
• Sole proprietorships subject to the regulation.
• Retail stores and shops.
• Restaurants and cafes.
• Pharmacies.
• Service provider companies.
• Contracting and construction companies.
• Distribution companies.
• Hotels and serviced apartments.
• E-commerce platforms.
• Multi-branch enterprises.
• Third parties issuing invoices on behalf of taxable suppliers.

Businesses engaging in direct B2C sales to end-consumers require solutions supporting simplified tax invoices and POS integration, whereas B2B companies require robust buyer data handling and clearance for standard tax invoices.

Restaurants typically require a specialized restaurant and cafe management accounting system linking dine-in, takeaway, and delivery orders with inventory and financial accounts. Digital Aamal confirms that DigitalPro for restaurants fully supports VAT and ZATCA portal integration.

Growing businesses operating from multiple sites benefit from a cloud accounting system, allowing accountants and management to oversee invoicing, accounts, and branch performance according to role permissions, complete with offline contingency plans.

Businesses that have not yet received Phase Two integration waves remain obligated to maintain Phase One compliance until officially notified by ZATCA.

How to Choose the Best ZATCA Approved Accounting Software?

Selecting the optimal ZATCA-compliant accounting software begins by identifying your specific operational and tax requirements, followed by hands-on testing rather than relying solely on marketing claims.

Consider the following selection criteria:

Define Your Business Category

Specify your business type:

• Retail store.
• Service company.
• Restaurant or cafe.
• Distribution business.
• Contracting business.
• Hospitality or hotel establishment.
• E-commerce operation.
• Multi-branch enterprise.

Each industry has distinct workflows for invoicing, inventory control, and reporting.

Identify Invoice Types

Ask key questions:

• Do I sell directly to individual consumers?
• Do I deal primarily with corporate clients (B2B)?
• Do I require both standard and simplified invoices?
• Do I process credit sales?
• Do I handle high volumes of returns?
• Do I operate online channels and physical POS terminals?

Audit All Branches and Devices

Compile a complete register of all:

• Branch locations.
• POS terminals and registers.
• E-commerce storefronts.
• Mobile sales applications.
• Invoicing servers and hardware units.
• Integrated third-party sales systems.

This audit is critical because all invoicing endpoints within the entity scope must comply with integration standards.

Test System Compliance

Request a live demonstration from the vendor covering:

1. Device onboarding setup.
2. Issuing a simplified invoice.
3. Issuing a standard invoice.
4. QR Code generation.
5. XML payload extraction.
6. Live clearance process execution.
7. Live reporting process execution.
8. Managing a rejected invoice response.
9. Issuing a credit note.
10. Exporting invoice compliance logs.

Review General Accounting Functions

Your software should not function merely as an invoice generator. Ensure comprehensive support for:

• Chart of accounts.
• Journal entries.
• Receipt and payment vouchers.
• Accounts receivable and payable ledgers.
• Sales and purchase management.
• Inventory control and valuation.
• Bank reconciliations.
• Cost center management.
• Profit & loss reporting.
• VAT return generation.

A smart reporting system can be deployed to analyze invoices, sales, purchases, expenses, and stock levels when connected directly with accounting data.

Evaluate Data Security Protocols

Verify critical security aspects:

• Data encryption standards.
• Role-based authorization controls.
• Automated data backup routines.
• Data hosting locations.
• Data retention policies.
• Disaster recovery plans.
• Audit trail capabilities.
• Multi-factor authentication options.
• Data export and portability rights.

Examine Downtime and Contingency Plans

Test system behavior under conditions such as:

• Internet connectivity failure.
• Fatoora platform outages.
• POS terminal hardware failure.
• Transmission rejection errors.
• Device certificate expiration.
• Hardware replacement scenarios.
• Branch relocation or closure.

Calculate Total Cost of Ownership

Avoid comparing initial license fees alone; calculate the comprehensive cost:

• Software licensing or subscription fees.
• Per-user additions.
• POS device expansion fees.
• Branch license additions.
• Initial setup and integration services.
• Staff training expenses.
• Data migration services.
• Ongoing technical support.
• Software updates and upgrades.
• Third-party integrations.
• Compatible hardware and thermal printers.

Approved accounting software provided by Digital Aamal offers full Arabic support alongside 24/7 technical assistance to resolve technical glitches, cashier delays, or rejected invoice errors promptly.

Explore Digital Aamal Software Solutions to compare general accounting, POS, cloud solutions, and tailored industry software.

How DigitalPro Accounting Software Helps You Achieve Compliance

DigitalPro accounting software seamlessly links e-invoicing operations directly with general ledger accounting, VAT reporting, payment methods, and inventory control within a unified system.

DigitalPro is recognized as a top integrated accounting system in Saudi Arabia for general accounting, point of sale, and e-invoicing, fully prepared for ZATCA Phase Two integration. Digital Aamal is listed and approved by ZATCA as an e-invoicing provider, offering a free trial version without requiring credit card details and supported by round-the-clock technical assistance.

Key features aiding compliance include:

• Direct invoice generation from sales data.
• Full Value Added Tax support.
• Handling standard and simplified invoices per system configuration.
• Automated journal entry posting.
• Comprehensive Point of Sale (POS) management.
• Real-time inventory deduction upon invoicing.
• Multi-user and multi-branch privilege controls.
• Seamless processing of returns and credit/debit notes.
• Payment tracking and cash management.
• Detailed sales, profitability, and tax reporting.
• Flexible cloud hosting options.
• Tailored features for retail stores and restaurants.
• Cross-platform hardware compatibility.

Adopting an integrated accounting system ensures invoicing, inventory, accounts, and POS run synchronously, preventing manual reconciliation errors across disconnected tools.

Before final deployment, test these key operational scenarios:

• Direct cash sale to an individual customer.
• Credit sale to a corporate client.
• Invoices containing multiple tax rate lines.
• Line-item vs. invoice-level discounts.
• Partial item returns.
• Generating credit notes.
• Cashier shift closure routines.
• Offline mode sales handling.
• Adding a new POS terminal.
• Generating a complete VAT return report.

You can request a free trial copy to test operations relevant to your industry, or contact us to review your branch count, POS terminals, invoice formats, and scheduled integration deadline.

Frequently Asked Questions

What does a ZATCA approved accounting software mean?

It refers to software that meets the e-invoicing mandates established by the Zakat, Tax and Customs Authority, capable of handling Phase One requirements and connecting to the Fatoora portal in Phase Two.

However, ZATCA emphasizes that its provider directory is for guidance purposes only and does not constitute formal certification for every software build. The taxpayer remains legally responsible for ensuring active system compliance.

Do I need a standalone e-invoicing tool separate from my accounting software?

No, you can utilize an integrated accounting system that includes e-invoicing capabilities, such as Digital pro. This is generally the optimal approach to prevent duplicate data entry and discrepancies between invoices and financial records.

What is meant by the term "Approved Software"?

It signifies that the software complies with ZATCA regulations or that the developer is included in the guidance list of qualified solution providers.

Is DigitalPro software officially approved?

Yes, the software complies with ZATCA e-invoicing standards, and DigitalPro is fully compatible with ZATCA guidelines and prepared for Phase Two integration.

Is DigitalPro suitable for retail shops, restaurants, and companies?

Yes, Digital Aamal Software Solutions provides specialized accounting systems built for retail stores, food service, and corporate enterprises with versatile features and integrations:

If you run a enterprise or business entity, the Cloud Accounting System is ideal for you.

If you manage a restaurant or cafe, the Restaurant & Cafe Management Software is tailored for your operational needs.

For custom solutions adapted to your business model, visit the Digital Aamal Solutions Page, or contact us to speak with an expert and select the best accounting system for your enterprise.

What are the requirements for Phase Two of E-Invoicing?

Requirements include integrating invoicing software with the Fatoora portal, onboarding issuing units, generating mandatory XML structures, UUIDs, cryptographic stamps, and expanded QR codes, securing clearance for standard invoices, submitting reporting for simplified invoices, saving response logs, and blocking invoice modification or deletion post-issuance. ZATCA notifies targeted groups at least six months prior to their mandatory phase deadline.

Does the program support Value Added Tax (VAT)?

Yes, the software fully supports Value Added Tax calculations and ZATCA compliance across POS terminals, restaurant systems, and general accounting modules.

Selecting a ZATCA approved accounting software must be grounded in verified compliance rather than marketing claims alone, which distinguishes Digital Aamal Software Solutions as a leading software provider in Saudi Arabia listed under the qualified e-invoicing solution providers directory.