ZATCA rolls out Phase 2 (integration with the Fatoora platform) in waves based on VAT-able revenue. According to ZATCA’s official announcement, Wave 25 covers all taxpayers whose revenue subject to VAT exceeded SAR 187,500 in 2022, 2023, 2024 or 2025, and they must integrate their e-invoicing solutions with Fatoora no later than 1 February 2027. ZATCA notifies each taxpayer of its wave by official email and SMS, and its guideline says notification comes at least six months in advance.
The two phases of e-invoicing
| Phase | Name | Start | What it requires |
|---|---|---|---|
| Phase 1 | Generation phase | 4 December 2021 | Generate tax invoices and notes electronically with a compliant solution; QR code on simplified invoices; no editing or deleting of invoices |
| Phase 2 | Integration phase | From 1 January 2023, in waves | Connect your solution to Fatoora; XML (or PDF/A-3) format; clearance of tax invoices; reporting of simplified invoices within 24 hours |
All VAT-registered businesses resident in Saudi Arabia must already follow Phase 1. Phase 2 applies to you from the date of your wave.
Wave 25: the latest announced wave
| Wave 25 | Details |
|---|---|
| Who is included | All taxpayers with revenue subject to VAT above SAR 187,500 in 2022, 2023, 2024 or 2025 |
| Integration deadline | No later than 1 February 2027 |
| Source | ZATCA official announcement |
Because the SAR 187,500 threshold is also the voluntary VAT registration threshold, Wave 25 brings in a very large number of small and medium businesses. If your company is VAT-registered and has crossed that revenue in any of those years, plan your integration now.
Earlier waves
Earlier waves covered larger businesses, step by step from the highest revenue down. Recent ones, as reported by industry sources, had thresholds of SAR 750,000 (Wave 23) and SAR 375,000 (Wave 24), with deadlines in the first half of 2026. If you were notified for an earlier wave and have not integrated, contact ZATCA and integrate immediately. See ZATCA penalties.
How do I know my wave?
- ZATCA notifies targeted taxpayers by official email and SMS registered with ZATCA.
- ZATCA’s guideline says notification is sent at least six months before the integration date.
- Check your ZATCA account and the Fatoora portal if you are unsure.
Can I integrate before my wave?
Yes. ZATCA’s FAQ says taxpayers may start following Phase 2 requirements voluntarily before their enforcement date. Until your wave starts, you must keep following Phase 1 rules.
How to integrate with Fatoora (Phase 2)
- Make sure your e-invoicing solution supports Phase 2 (XML, cryptographic stamp, UUID, hash chain, clearance and reporting).
- Log in to the Fatoora portal (fatoora.zatca.gov.sa) with your ZATCA (ERAD) credentials.
- Request an OTP for each e-invoicing unit (device or system) you want to onboard.
- Enter the OTP in your e-invoicing solution, which generates the keys and receives its cryptographic stamp identifier (CSID).
- Check in Fatoora that the unit appears under View list of solutions and devices.
- Start issuing Phase 2 invoices: clear tax invoices, report simplified invoices within 24 hours.
Every device that issues invoices under the same VAT number must be onboarded.
A 90-day plan for Wave 25
| When | What to do |
|---|---|
| Now | Confirm your VAT revenue for 2022–2025 and your wave; choose a Phase 2-ready solution |
| Next 30 days | Clean your customer master data (buyer addresses, VAT numbers), set up your company details in Arabic |
| 30–60 days | Test in ZATCA’s sandbox or simulation; train your team |
| 60–90 days | Onboard your units in Fatoora; go live well before 1 February 2027 |
LUBA ERP includes Phase 2: Fatoora onboarding with an OTP, clearance and reporting. See LUBA ERP ZATCA e-invoicing software or return to the ZATCA e-invoicing rules guide.
Sources
- ZATCA – Criteria for Wave 25 of the integration phase
- ZATCA – Detailed Guidelines for E-Invoicing (PDF)
- Tarleaks – ZATCA Phase 2 waves overview
Frequently asked questions
What is ZATCA Wave 25?
Wave 25 is the group of taxpayers whose revenue subject to VAT exceeded SAR 187,500 in 2022, 2023, 2024 or 2025. ZATCA requires them to integrate their e-invoicing solutions with Fatoora no later than 1 February 2027.
What is the deadline for ZATCA Phase 2?
Each wave has its own deadline. For Wave 25, ZATCA’s announced deadline is 1 February 2027. Check your ZATCA notification for your exact date.
How will I know which wave I am in?
ZATCA notifies targeted taxpayers by the official email and SMS registered with ZATCA, at least six months before their integration date according to its guideline.
Can I start Phase 2 before my wave?
Yes, voluntarily. Until your wave starts you must continue to follow Phase 1 requirements.
Do I need to onboard every device or POS?
Yes. Every device or unit issuing invoices under your VAT number must be onboarded on the Fatoora portal.
Can I keep using my current invoicing system?
Yes, if it is updated to meet Phase 2 requirements. ZATCA confirms that the same solution used for Phase 1 can be used after it is updated.
What happens if I miss my integration deadline?
Not complying with e-invoicing requirements can lead to warnings and fines. Integrate as soon as possible and keep evidence of your efforts.
Does Phase 2 apply to non-resident companies?
No. ZATCA states that taxable persons who are not resident in Saudi Arabia are not required to issue electronic invoices or notes.
