What’s Changing in Wave 25?
Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) has announced that Wave 25 of the E-invoicing Phase Two (Integration Phase) will apply to all businesses whose VAT-taxable revenues exceeded SAR 187,500 in any of the years 2022–2025.citeturn0search5 Businesses in this wave must fully integrate their e-invoicing systems with ZATCA’s Fatoora Platform by February 1, 2027.citeturn0search5
Actionable Steps for Compliance
| Step | What to Do | Why It Matters |
|---|---|---|
| 1. Assess eligibility | Calculate taxable revenues for 2022-2025. If over SAR 187,500 in any year, Wave 25 applies. | Missed classification = non-compliance. |
| 2. Upgrade systems | Ensure your e-invoicing software supports • integration with Fatoora • required invoice fields • real-time QR codes and enhanced structure. | Outdated systems could fail integration or be rejected. |
| 3. Internal audits or test runs | Before Feb 1, 2027, run internal checks for sample invoices. | Identify gaps in formatting, data capture, or system capabilities. |
| 4. Train staff & partners | Educate accounting, procurement and IT teams about new invoice structure and data requirements. Vendors/suppliers should reflect these in their invoices too. | Disjointed processes can lead to delays or erroneous filings. |
| 5. Monitor ZATCA updates | ZATCA will inform each wave six months in advance. Keep tabs on official announcements. | Gives time to adopt changes without scramble. |
Examples of What Success Looks Like
- A retailer with SAR 200,000 taxable revenue in 2024 upgrades its POS and ERP software, issues sample invoices through Fatoora, and trains staff — comes February 2027, it’s ready.
- A service provider with income fluctuating around the threshold tracks prior-year revenue, sees that 2022 exceeded SAR 187,500, thus sets timeline accordingly rather than waiting until January 2027.
Risks of Non-Compliance
- Inability to issue valid VAT invoices post-deadline.
- Possible fines or penalties for delayed or incorrect submission of invoices.
- Reputation loss and audit exposure.
Final Checklist Before Feb 1, 2027
- Revenue confirmed for eligibility
- Software or cloud e-invoicing system compliant
- API or integration built to use Fatoora format
- Invoice templates and fields valid
- QR code working and accepted by ZATCA
- Staff trained and process defined
- Scheduled test run completed
By starting now, businesses in Saudi Arabia can ensure they cross the February 2027 deadline with confidence—not last-minute stress.