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)
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) |
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
- Assess whether your revenue exceeds the SAR 187,500 threshold in any year 2022-2025.
- Upgrade your system or select software vendors that support digital integration with Fatoora and compliant formats.
- Train finance staff on the new invoice fields, QR code usage, and validation of invoices under the updated regulation.
- 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.