Compliance
Compliance Essentials: ZATCA’s E-Invoicing Integration Phase Wave 25 Explained
Saudi taxpayers must prepare now for Wave 25 of ZATCA’s integration phase of e-invoicing, including new technical and timeline requirements.
By NomadicTax Research Team • 5-8 min read • August 23, 2026
## What Is Wave 25 of the E-Invoicing Integration Phase?
On **24 July 2026**, ZATCA announced criteria for **Wave 25** of its “Integration Phase” under the e-invoicing regulation. This wave includes taxpayers whose revenues subject to VAT exceeded **SAR 187,500** during any of the years 2022 to 2025. These taxpayers must integrate their e-invoicing systems with ZATCA’s Fatoora platform by **1 February 2027**. ([zatca.gov.sa](https://zatca.gov.sa/en/MediaCenter/News/Pages/Wave25-E-invoicing.aspx?utm_source=openai))
## Key Compliance Requirements
| Requirement | Details |
|-------------|---------|
| Integration | Taxpayers must connect their e-invoicing system **directly** to the Fatoora platform. |
| Invoice Format | Must use the standard format including all required fields and a **QR code**. |
| Phased Roll-Out | Wave 25 is just one of several waves; those targeted will be notified at least **six months in advance**. ([zatca.gov.sa](https://zatca.gov.sa/en/MediaCenter/News/Pages/Wave25-E-invoicing.aspx?utm_source=openai)) |
## Penalties and Risks for Non-Compliance
- Late integration after the deadline may lead to administrative penalties or restrictions in issuing invoices.
- Non-standard invoices can be rejected or may require re-issuance, affecting customer relations or VAT-input recovery.
- Delays can cause transactional backlog, leading to cash-flow disruption.
## Practical Steps to Prepare Now
1. **Assess whether your revenue exceeds the SAR 187,500 threshold** in any year 2022-2025.
2. **Upgrade your system** or select software vendors that support digital integration with Fatoora and compliant formats.
3. **Train finance staff** on the new invoice fields, QR code usage, and validation of invoices under the updated regulation.
4. **Conduct mock invoicing** and test feeds to Fatoora before the enforcement date.
## Example Scenario
A Riyadh-based retailer had SAR 200,000 in VAT taxable sales in 2022 and 2023. Under Wave 25, this business must integrate with Fatoora by 1 February 2027. The business should engage its ERP vendor to ensure correct formatting, schedule internal training, and test submission well before deadline to avoid penalties.
**Takeaway**: Wave 25 is imminent. Taxpayers in Saudi Arabia above the revenue threshold must move quickly to ensure e-invoicing compliance, both technically and procedurally. Early action helps avoid penalties and supports smoother digital transformation.