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ComplianceFeb 08, 202610 min read

GCC VAT and e-invoicing: configuring ERPNext & Odoo correctly

VAT and e-invoicing across the GCC is now non-optional. Here's exactly how we configure both ERPNext and Odoo for UAE, KSA, Oman and Bahrain.

Solvronix Compliance
Senior Consultant

Common foundation

  • One tax template per country, per VAT rate.
  • Tax category mapping on both items and customers.
  • Reverse charge configuration for imports.
  • Exempt vs zero-rated handled explicitly — not as the same thing.

Saudi Arabia — ZATCA phase 2

Phase 2 requires cryptographic stamping, XML/UBL submission and QR code validation. In ERPNext this is delivered through the ZATCA integration app; in Odoo it's native in the Saudi localization.

Required artifacts

  • CSID certificate from ZATCA portal.
  • Cryptographic stamp identifier per device.
  • UBL 2.1 XML invoice schema validation.
  • QR code on every invoice with mandatory fields.

UAE — FTA VAT

UAE VAT remains straightforward: 5% standard rate, designated zones, and quarterly/monthly VAT returns. The bigger change is the corporate tax layer introduced in 2023 — configure analytic dimensions early to make corporate tax reporting clean.

Oman & Bahrain

Both follow the GCC VAT framework: 5% standard (Oman) and 10% (Bahrain). E-invoicing rollout is following KSA's lead — prepare for phase-2-style requirements within 12–24 months.

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