Short answer: On 24 July 2026, ZATCA announced Wave 25 of the e-invoicing Integration Phase (Phase 2). It covers every taxpayer whose VAT-taxable revenue exceeded SAR 187,500 in any of 2022, 2023, 2024 or 2025, with an integration date with the FATOORA platform of 1 February 2027. That leaves in-scope businesses roughly three months from today to get their systems ready.
Wave 25 is not just the next number in the series. It halves the threshold used in Wave 24 and, for the first time, counts 2025 revenue. The practical effect is that a very large group of micro and small businesses, including shops, cafés, workshops and online stores, is now inside the mandatory integration scope. This guide explains who is covered, what Phase 2 actually requires, and a realistic week-by-week plan to the deadline.
What exactly did ZATCA announce?
According to ZATCA’s official announcement, taxpayers whose VAT-taxable revenue exceeded SAR 187,500 during 2022, 2023, 2024 or 2025 must integrate their e-invoicing solutions with FATOORA starting 1 February 2027. Exceeding the threshold in a single one of those four years is enough to bring a business into scope.
| Wave | VAT-taxable revenue threshold | Reference years | Integration window / date |
|---|---|---|---|
| Wave 23 | Above SAR 750,000 | 2022, 2023 or 2024 | 1 January – 31 March 2026 |
| Wave 24 | Above SAR 375,000 | 2022, 2023 or 2024 | 1 April – 30 June 2026 |
| Wave 25 | Above SAR 187,500 | 2022, 2023, 2024 or 2025 | From 1 February 2027 |
ZATCA rolls out Phase 2 gradually in waves and notifies targeted taxpayers at least six months before their integration date.
Why Wave 25 is different
The threshold matches the voluntary VAT registration threshold
Mandatory VAT registration in Saudi Arabia applies above SAR 375,000, while businesses may register voluntarily once taxable supplies or expenses exceed SAR 187,500. In practice, Wave 25 reaches deep into the VAT-registered population, including voluntary registrants that until recently considered themselves too small for integration.
2025 revenue now counts
A business founded in 2025 that crossed the threshold in its first year is in scope, even with no trading history in 2022–2024.
The businesses affected run on lighter tools
Many companies in this segment issue invoices from an older POS, a spreadsheet or a mobile app that is not Phase 2 ready. For them, the job is rarely “upgrade the ERP”; it is usually choosing a compliant system for the first time and setting up clean master data.
How to check whether you are in scope
- Pull your VAT returns for 2022 to 2025 from the ZATCA portal.
- Calculate VAT-taxable revenue per year; do not add years together. The test is any single year.
- Compare each year with SAR 187,500. One year above the line puts you in scope.
- Watch your registered ZATCA contact channels for the notification, but do not wait for it to start preparing.
- If you operate several branches or registrations, confirm which VAT number the revenue sits under, because onboarding is done per taxpayer and per invoicing unit.
What Phase 2 actually requires from your system
Phase 1 (Generation), which began on 4 December 2021, required electronic issuance with specific fields. Phase 2 (Integration) goes much further:
- Direct API integration with FATOORA, after onboarding each invoicing unit or device and obtaining its cryptographic credentials.
- Clearance of standard tax invoices (B2B) in real time before they are shared with the buyer; the platform validates and stamps the invoice.
- Reporting of simplified invoices (B2C), such as POS receipts, within 24 hours of issuance, stamped by the taxpayer’s own solution.
- Structured format: XML (UBL 2.1), or PDF/A-3 with embedded XML.
- QR code, UUID and hash chain linking each invoice to the previous one to prevent tampering.
- Credit and debit notes under the same rules, referencing the original invoice.
In short, printing a QR code is not enough. You need a system that talks to ZATCA’s platform, keeps a tamper-evident sequence, and handles the rejections and warnings the platform returns.
A practical readiness plan to 1 February 2027
| Period | Task | Outcome |
|---|---|---|
| Late Oct – mid Nov 2026 | Confirm scope; inventory every invoicing point (cashier, branch, online store, sales rep) | List of units that need onboarding |
| Mid – late Nov 2026 | Select a Phase 2 compliant system or upgrade the current one | Clear decision and an implementation schedule |
| December 2026 | Clean master data: items, VAT categories, customer VAT numbers and national addresses | Reliable data before the first live invoice |
| Early January 2027 | Onboard units on FATOORA, run sandbox tests, issue test invoices | Test invoices accepted by the platform |
| Mid – late January 2027 | Train cashiers and accountants; test returns and credit notes | Documented procedures and a ready team |
| 1 February 2027 | Go live and monitor rejections/warnings daily | Stable compliance from day one |
Common mistakes we see in small businesses
- A stand-alone invoicing app disconnected from inventory and accounting, which doubles the work at VAT return time.
- Forgetting the online store, whose orders are invoices too.
- Incomplete customer data, a frequent cause of B2B clearance rejections.
- Testing in the final week, leaving no time to fix configuration issues.
- No offline procedure for POS outages and catching up on reporting within the deadline.
What this means for Saudi businesses
Wave 25 makes ZATCA-integrated e-invoicing the operating norm for almost every VAT-registered business, not just large taxpayers. Handled well, it is an upgrade rather than a burden: moving to an integrated system gives you compliant invoices plus live inventory, automatic journal entries and return-ready VAT reports.
For shops, restaurants and small retailers, the real decision is whether to buy a stop-gap invoicing tool or one system that runs sales, stock and accounting together. The second option takes a little more effort upfront and pays back at every VAT return and every new branch.
Riv-ERP is compliant with ZATCA e-invoicing Phases 1 and 2 and brings sales, POS, multi-warehouse inventory and accounting into one system, with exclusive integration with Salla and Zid stores and 24/7 support from a local team in Jeddah. If you prefer a perpetual license with online/offline operation, RivDesktop runs on Windows, web and cloud. Request a quote and our team will help you scope what you need before 1 February 2027.
Ready to integrate? See Riv-ERP ZATCA Phase 2 e-invoicing software.
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Frequently Asked Questions
Am I in Wave 25 if I exceeded SAR 187,500 in only one year?
Yes. The criterion is VAT-taxable revenue above SAR 187,500 in any one of 2022, 2023, 2024 or 2025. A single year above the threshold is sufficient.
What is the Wave 25 integration date?
ZATCA set 1 February 2027 as the date for in-scope taxpayers to integrate their e-invoicing solutions with FATOORA. Aim to finish onboarding and testing during January 2027 so go-live is stable.
My company was established in 2025. Does Wave 25 apply?
Yes, if your 2025 VAT-taxable revenue exceeded SAR 187,500. Wave 25 is the first wave to include 2025 in the assessment, so it captures newer businesses that earlier waves did not.
Is a QR code on my invoice enough?
No. The QR code was a Phase 1 requirement. Phase 2 requires integration with FATOORA, XML-based invoices, real-time clearance of B2B tax invoices and reporting of simplified invoices within 24 hours.
What about sales from my Salla or Zid store?
Online store sales are invoices subject to the same rules. Ideally, orders flow automatically into a compliant accounting system that issues, reports and updates stock. Riv-ERP offers direct integration with Salla and Zid for exactly this purpose.
Will ZATCA notify me?
ZATCA states it notifies targeted taxpayers at least six months before their integration date. The notification is not a prerequisite for preparing, though; if you meet the criterion, start now.
Sources: ZATCA – Wave 25 announcement, ZATCA – E-invoicing roll-out phases, EY Tax News – Wave 25 vs Waves 23 and 24.
