What Is Wave 25 (Integration Phase of E-Invoicing)?
Phase Two (Integration Phase) of e-invoicing under ZATCA means implementing more advanced technical and business requirements. For Wave 25, ZATCA has selected taxpayers with VAT-taxable revenues exceeding SAR 187,500 in any one of 2022-2025. These taxpayers must integrate their electronic invoicing solutions with ZATCA’s Fatoora platform by February 1, 2027. (zatca.gov.sa)
What New Requirements Apply
Wave 25 adds the following obligations beyond the Generation Phase:
- Must issue E-invoices in a specified electronic format; including defined fields like buyer VAT number for B2B invoices. (zatca.gov.sa)
- Must be technically integrated via API or system link to ZATCA’s platform (Fatoora). Local e-invoicing solution providers must support this. (zatca.gov.sa)
- Enhanced controls: no offline “queuing” without notification, tamper proof systems, correct timestamping, secure cryptographic signatures where required. (zatca.gov.sa)
Who Is Included & Who Might Be Up Next
Included in Wave 25:
- Businesses whose VAT-subject revenue exceeded SAR 187,500 in 2022, 2023, 2024 or 2025. (zatca.gov.sa)
- These may include smaller SMEs—this revenue threshold captures many more than previously.
Staying alert for future waves:
- ZATCA will notify the next waves at least six months in advance. If you’re close to the threshold or suspect revenue will exceed it, evaluate readiness now. (zatca.gov.sa)
Action Plan to Comply
- Assess recent revenue to see if you cross SAR 187,500 in any of last four years; if you do, you’re in Wave 25.
- Audit your current e-invoicing solution: Does it support all required fields? Secure transmissions? API integration? Crypto signatures? If not, upgrade.
- Vendor selection (if needed): Work with providers familiar with ZATCA’s specifications (see “E-Invoice Specifications” document). (zatca.gov.sa)
- Test integration with Fatoora early—simulate the live setup, make sure data formatting and transmission works.
- Train staff on technical & operational changes: Adjust internal workflows, invoice formats, customer invoicing systems.
- Document compliance thoroughly—logs, versioned files, timestamped records.
Example Scenario
An import-export trader with SAR 250,000 of VAT-subject revenue in 2024 falls into Wave 25. Their current system issues invoices but lacks buyer VAT info and cannot API to Fatoora. They will need to: upgrade to a solution that integrates with Fatoora by Feb 1 2027, include required fields, ensure digital signature support, train accounting staff, and adjust IT setup—all before the deadline.
Bottom Line
Wave 25 means more businesses will enter the Integration Phase. The move toward full technical compliance gives ZATCA greater visibility, improves the integrity of VAT systems, and reduces risk of non-compliance fines down the line. For affected taxpayers, early preparation is key.
For deeper technical detail consult the ZATCA XML Business & Technical Requirements and E-Invoicing Regulation documents.