For businesses operating in Saudi Arabia, ZATCA Phase 2 compliance is no longer a back office requirement it has become a critical part of everyday financial operations.
With the Integration Phase now in effect, businesses must ensure that their ERP systems connect directly with the FATOORA platform for invoice clearance and reporting. For companies using Microsoft Dynamics 365 Finance and Operations (D365 F&O), this means implementing a secure and fully compliant integration workflow. Microsoft’s official guidance for Saudi electronic invoicing outlines configuration, onboarding, and submission steps specific to D365 Finance.
At Toqxcel, we help organizations streamline this process with end-to-end ZATCA Phase 2 integration services built on Microsoft Dynamics 365 and Microsoft Azure.
Before starting the implementation, it’s important to understand what Phase 2 requires. Unlike Phase 1, which focuses on invoice generation and storage, Phase 2 requires real time integration with ZATCA’s FATOORA portal.
This includes:
Microsoft Learn specifically notes that these steps must be configured in D365 Finance or Supply Chain Management before submission.
The first step is to review your current Dynamics 365 environment. This includes checking:
A proper assessment helps identify gaps before the technical integration begins. At Toqxcel, this is where we typically start our ZATCA integration implementation process to ensure the ERP is ready for compliance.
Once the environment is assessed, the next step is enabling electronic invoicing. In Microsoft Dynamics 365 Finance and Operations, this involves:
This is one of the most important steps because incorrect field mapping often leads to invoice rejections.
ZATCA onboarding is mandatory before invoices can be submitted. During this process, businesses must obtain:
Microsoft’s official onboarding documentation confirms that this step is required for all taxpayers subject to electronic invoicing in Saudi Arabia.
This stage includes:
At Toqxcel, we support secure onboarding and certificate configuration as part of our ZATCA compliance service .
Once onboarding is complete, the system must generate invoices in the required XML format. ZATCA requires invoices in UBL 2.1 XML structure, including:
Incorrect XML mapping is one of the most common reasons for rejection. This is why we recommend automated pre-submission validation checks within D365 workflows.
The next step is establishing API connectivity between D365 F&O and the ZATCA FATOORA portal. This integration handles:
Industry implementation guides emphasize secure API communication as a critical part of successful integration.
At Toqxcel, we build secure API workflows using Microsoft Azure and D365 integration capabilities to ensure stable invoice submission.
Before production deployment, businesses must complete sandbox validation. This stage includes:
Only after successful validation should the system move to production. Microsoft recommends completing all compliance checks before requesting the production of CSID.
At Toqxcel our approach focuses on building reliable, compliance-ready ERP workflows. Our services include:
Integrating ZATCA Phase 2 with Microsoft Dynamics 365 Finance and Operations requires a structured technical approach from ERP assessment and onboarding to XML validation and secure API workflows.
When implemented correctly, businesses can reduce invoice rejections, improve compliance, and ensure uninterrupted financial operations.
At Toqxcel, we help organizations achieve seamless ZATCA compliance through our dedicated ZATCA Phase 2 integration services , built to support Microsoft Dynamics 365 environments.
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