Compliance
Saudi Arabia’s Wave 25 of E-Invoicing Integration: How to Prepare by 2027
Saudi Arabia’s ZATCA has titled revenue thresholds for Wave 25 of Phase Two e-invoicing integration, with a deadline of February 1, 2027—businesses should align technical readiness, formats, and system integration now to avoid penalties.
By NomadicTax Research Team • 5-8 min read • August 27, 2026
## Background: What is Phase Two of E-Invoicing?
Phase One (Generation Phase) in Saudi Arabia required businesses to stop using handwritten or basic computer invoice formats and instead generate **electronic invoices** per ZATCA’s specification. Phase Two (Integration Phase) obliges **integration with ZATCA’s platform “Fatoora”**, inclusion of additional fields, and adherence to stricter formats.([zatca.gov.sa](https://zatca.gov.sa/en/MediaCenter/News/Pages/default.aspx?utm_source=openai))
## Wave 25: What’s New?
- For **Wave 25 of Phase Two**, targeted taxpayers are those whose **VAT-able revenues exceeded SAR 187,500** in any of the years 2022-2025.([zatca.gov.sa](https://zatca.gov.sa/en/MediaCenter/News/Pages/default.aspx?utm_source=openai))
- All such taxpayers will be **notified** and will need to integrate their e-invoicing systems with **Fatoora** by **February 1, 2027**.([zatca.gov.sa](https://zatca.gov.sa/en/MediaCenter/News/Pages/default.aspx?utm_source=openai))
## Implications for Businesses
- **Technical adjustments**: Update systems—both billing and ERP modules—to match required invoice format and communicate seamlessly with Fatoora platform.
- **Field requirements**: New fields and data points must be included—extra metadata, QR codes, possibly detailed breakdowns.
- **Testing & certification**: Businesses may need to undergo compliance validation or registration to link with Fatoora.
- **Penalties for non-compliance**: Operating after deadline without integrating may lead to fines or other legal enforcement.([zatca.gov.sa](https://zatca.gov.sa/en/MediaCenter/News/Pages/default.aspx?utm_source=openai))
## Example
A Saudi SA Company with SAR‐200,000 revenues in 2022 must adopt Wave 25 changes. If their invoicing software currently outputs PDF invoices with standard VAT fields only, they’ll need to implement format changes, likely using API or middleware, to send XML or JSON-based e-invoices to Fatoora by the deadline.
## Practical Steps to Get Ready
1. **Gap analysis**: Compare current invoice fields with ZATCA’s required format for integration.
2. **Select a provider**: Either use approved software service providers or build in-house if capacity sufficient.
3. **Run pilot**: Before deadline, run test submissions to Fatoora, check for errors.
4. **Train staff**: Accounting, sales, and IT teams need awareness of format, timing, and submission protocols.
5. **Monitor alerts from ZATCA**: They send six-month notices to those in upcoming waves.([zatca.gov.sa](https://zatca.gov.sa/en/MediaCenter/News/Pages/default.aspx?utm_source=openai))
## Risks and Costs
- Implementation cost: Software updates, staff training, possibly penalties for late compliance.
- Business disruptions: Errors in submitted invoices may delay payments/bookings.
## Conclusion
Wave 25 is a major milestone in Saudi’s digital tax transformation. Businesses above the threshold should treat **February 1, 2027** as a non-negotiable deadline. Early technical work, validation, and process re-engineering can prevent significant compliance risk. Advisors like EY, Deloitte suggest integrating compliance into financial close and IT roadmaps now—as 12-18 months is short when multiple systems are involved.