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ZATCA Phase 1 Compliant E-Invoicing

Every invoice issued by TheOctopus AI follows the ZATCA specification — sequential serial number, TLV-encoded QR code, and explicit VAT display.

Why ZATCA?

ZATCA (Saudi Arabia's Zakat, Tax and Customs Authority) has rolled out e-invoicing in two phases. Phase 1 (effective December 2021) requires every VAT-registered business to issue electronic invoices carrying a sequential number, a TLV QR code, and a clear VAT breakdown. Non-compliance carries fines starting at SAR 1,000 and escalating with repeated violations.

How TheOctopus AI handles ZATCA

  • Automatic unique sequential serial number on every invoice.
  • TLV-encoded QR code printed on every thermal receipt.
  • VAT breakdown on-receipt with inclusive and exclusive totals.
  • Credit note support in the ZATCA-compliant format.
  • Amiri-font Arabic printing with full RTL support on USB and network thermal printers.

What you need to get started

  1. 1. Enable ZATCA mode

    Our team flips the zatca_enabled flag on your restaurant during onboarding.

  2. 2. Enter your VAT registration number

    We capture your official VAT registration and business contact details in the admin panel.

  3. 3. Run a test invoice

    We issue a test invoice and verify the QR code and VAT display before go-live.

Book a Demo

ZATCA FAQ

What does ZATCA Phase 1 require?

Phase 1 mandates electronic invoices carrying a sequential number, a TLV-encoded QR code, and a VAT breakdown. This has been active since December 2021 for every VAT-registered business in Saudi Arabia.

Is TheOctopus AI ZATCA-certified?

The system issues invoices matching the ZATCA Phase 1 technical specification. Final validation of any invoice is performed by ZATCA directly through their portal.

How is the QR code generated?

TheOctopus AI generates a TLV (Tag-Length-Value) encoded QR automatically on every invoice. It includes the seller name, VAT number, date-time, total, and VAT amount.

What is the difference between Phase 1 and Phase 2?

Phase 1 (issuing and storing e-invoices) is live today. Phase 2 (direct integration with ZATCA systems and cryptographic signing) is being rolled out in waves by sales volume. TheOctopus AI fully supports Phase 1; Phase 2 support is on the roadmap.

Are credit notes supported?

Yes. Electronic credit notes are issued with their own sequential number, linked to the original invoice, with a QR code and adjusted VAT matching the refund amount.

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