If your business had more than SAR 187,500 of VAT-able revenue in any single year from 2022 to 2025, ZATCA's Wave 25 almost certainly includes you. That means your invoicing system has to be connected to the FATOORA platform by 1 February 2027. For many small and mid-sized companies this is the first time Phase 2 applies, and the work takes longer than most expect.
Here is what Wave 25 is, how to check whether you are in it, and a practical plan for the months before the deadline.
What Wave 25 changes
ZATCA rolls out the integration phase of e-invoicing (Phase 2) in waves, each defined by a revenue threshold. Wave 24 covered taxpayers above SAR 375,000, with a deadline of 30 June 2026. Wave 25 halves that threshold to SAR 187,500, which brings a much larger group of businesses into scope.
| Wave 24 | Wave 25 | |
|---|---|---|
| VAT-able revenue above | SAR 375,000 | SAR 187,500 |
| Revenue years checked | as set in its notice | any year from 2022 to 2025 |
| Integration deadline | 30 June 2026 | 1 February 2027 |
ZATCA notifies the taxpayers in each wave at least six months before its integration deadline, so notices for Wave 25 will already have started reaching businesses.
Are you in scope?
You are in Wave 25 if both of these are true:
- You are registered for VAT in Saudi Arabia.
- Your revenue subject to VAT exceeded SAR 187,500 in at least one of the years 2022, 2023, 2024 or 2025.
It is any one year, not an average. A company that crossed the line once in 2023 and fell back below it since is still in scope. If you have received a ZATCA notification, treat it as confirmation. If you think you qualify but have not had one, check your FATOORA account and ask your tax adviser.
What "integration" actually means
Phase 1, which started in December 2021, required you to generate invoices electronically. Phase 2 requires your invoicing system to talk to ZATCA:
- Standard tax invoices (B2B and B2G) are sent to FATOORA and cleared before you share them with the buyer.
- Simplified tax invoices (B2C) are issued at the point of sale with a QR code and reported to FATOORA within 24 hours.
- Each invoice is produced as UBL 2.1 XML, carries a UUID, an invoice hash linked to the previous invoice, a cryptographic stamp and a QR code.
- Your system is onboarded to FATOORA with a Cryptographic Stamp Identifier (CSID).
We explain each of these in what Phase 2 requires.
A 90-day plan to be ready
Most Wave 25 businesses run one of three things today: an ERP, an accounting package, or a point-of-sale system. The plan is similar for all of them.
Days 1–15: map what you have. List every system that issues an invoice, credit note or debit note: ERP, POS, billing, branch systems. Note who supports each one and whether the vendor has a ZATCA Phase 2 update. This is where most delays come from: a second billing system nobody remembered.
Days 15–45: choose the integration route. There are two common routes:
- Use your ERP's own ZATCA module, where one exists. ERPNext has dedicated KSA compliance apps, and Odoo Enterprise includes a Saudi e-invoicing module.
- Connect your system to a dedicated e-invoicing platform such as Taxilla enInvoice. It validates, stamps and submits invoices from almost any source system. This suits businesses with several systems, or software that has no Phase 2 module.
Our guide on connecting your ERP to FATOORA compares the two.
Days 45–75: build and test. Configure the integration, onboard to FATOORA's simulation environment, and test the document types you actually issue, including credit notes and simplified invoices from every branch.
Days 75–90: go live and check. Onboard production, watch the first days of clearance and reporting responses closely, and train finance and sales teams on what a rejected invoice looks like and how to fix it.
What happens if you miss the deadline
ZATCA starts with a warning. Repeated violations within 12 months then bring rising fines, up to SAR 50,000 for serious ones such as deleting or amending an issued invoice. Our article on e-invoicing penalties sets out the steps.
Start with the inventory
The single most useful thing to do this week is the system inventory from step one. It tells you which route fits, and how long the rest will take.
Prestige Saudi Company is an official partner of Taxilla and implements ERPNext and Odoo. We have connected ERPNext to Taxilla for clients in the Kingdom. If you are in Wave 25, request a demo of our ZATCA e-invoicing solution and we will review your systems with you.
This article is general information, not tax advice. Check your obligations with ZATCA and your tax adviser.
