Compliance
E-Invoicing Wave 25 in Saudi Arabia: Preparation Checklist for Businesses
By July 2026 Saudi Arabia has announced the 25th wave of taxpayers required to integrate with the FATOORA platform. Non-compliance after 1 February 2027 will trigger penalties—here’s your compliance roadmap.
By NomadicTax Research Team • 5-6 min read • August 15, 2026
## What is the “Integration Phase” of E-Invoicing in Saudi Arabia?
The **Generation Phase** (since 4 December 2021) required taxpayers to stop handwritten or spreadsheet invoices and instead generate and store e-invoices with required fields like QR codes. ([zatca.gov.sa](https://zatca.gov.sa/en/MediaCenter/News/Pages/Wave25-E-invoicing.aspx?utm_source=openai))
The **Integration Phase** (Phase Two) adds technical requirements: integrating invoice systems with ZATCA’s **Fatoora platform**, applying specific formats, adding fields beyond generation and storage. ([zatca.gov.sa](https://zatca.gov.sa/en/MediaCenter/News/Pages/Wave25-E-invoicing.aspx?utm_source=openai))
## Wave 25 Criteria & Timeline
- **Criteria**: Includes taxpayers whose VAT-subject revenues exceeded **SAR 187,500** in any of the years 2022-2025. ([zatca.gov.sa](https://zatca.gov.sa/en/MediaCenter/News/Pages/Wave25-E-invoicing.aspx?utm_source=openai))
- **Deadline to Integrate**: **1 February 2027** for Wave 25 taxpayers. Post that date, non-compliance risks penalties. ([zatca.gov.sa](https://zatca.gov.sa/en/MediaCenter/News/Pages/Wave25-E-invoicing.aspx?utm_source=openai))
## Action Items Before 1 February 2027
| Area | What Businesses Should Do |
|------|----------------------------|
| **System readiness** | Ensure your ERP/invoice generation solution can integrate with Fatoora, generate invoices in required XML/JSON formats, include new mandatory fields. |
| **Data accuracy** | Verify past revenue figures (2022-2025) to confirm whether you fall into this wave. |
| **Internal training** | Train accounts and audit teams on new formats, digital signatures, QR coding, and Fatoora’s interface. |
| **Testing & pilot** | If possible, trial the integration ahead of time to avoid last-minute failures. |
| **Compliance monitoring** | Set up internal audit or compliance checklists to periodically verify that invoices issued comply with ZATCA format. |
## Penalties and Risks
- Issuing invoices in outdated formats **post-1 Feb 2027** may lead to fines.
- Potential downtime or disruption if systems fail to connect or generate valid invoices.
- Audit risk: misreporting or missing e-invoice data may trigger tax audits or objections.
## Practical Example
**Company A**, based in Riyadh, did **SAR 200,000** in VAT-subject revenue in 2023. It uses a legacy invoice system generating PDFs. As part of Wave 25, by **1 Feb 2027**, it must:
- Modify its system to integrate to Fatoora
- Add all required new invoice fields (e.g. buyer tax ID, item details, etc.)
- Conduct live tests and deploy updates ahead of deadline
## Tips for Strategic Advantage
- Leverage this integration phase to reduce invoice-processing costs by automating reconciliation.
- Use e-invoice data for business intelligence: track customer behavior, error rates, cash flow timings.
- Engage third-party providers early if your in-house system lacks expertise.
**Conclusion** — Saudi Arabia’s Wave 25 push for e-invoice Integration marks a significant compliance milestone. If you meet the revenue thresholds, you need to act now or risk penalties beginning **February 1, 2027**.