E-invoicing Wave 25 — who is covered, and by when?
Quick summary
On 24 July 2026 the Zakat, Tax and Customs Authority (ZATCA) published the criteria for Wave 25 of Phase Two of e-invoicing: it covers every taxpayer whose revenue subject to value added tax exceeded SAR 187,500 during 2022 or 2023 or 2024 or 2025, and each of them must integrate their solution with the Fatoora platform by 1 February 2027 at the latest. This is the lowest revenue threshold announced so far, which means it reaches smaller businesses than any earlier wave.
Source: the official Zakat, Tax and Customs Authority (ZATCA) announcement — accessed on 1 August 2026. This page is an explanatory guide and is no substitute for the official source.
Wave 24 vs Wave 25
| Wave | Taxable revenue threshold | Qualifying years | Integration deadline |
|---|---|---|---|
| Wave 24 | SAR 375,000 | 2022 or 2023 or 2024 | 30 June 2026 |
| Wave 25Latest | SAR 187,500 | 2022 or 2023 or 2024 or 2025 | 1 February 2027 |
The threshold has been cut from 375,000 to SAR 187,500 — so Wave 25 reaches smaller businesses than any earlier wave, including many that were never required to integrate before.
Integration readiness checklist
First, confirm that you are covered
The test is revenue subject to value added tax, not total sales. If it exceeded SAR 187,500 in any of the years 2022 or 2023 or 2024 or 2025, you fall within the wave. The Zakat, Tax and Customs Authority (ZATCA) notifies the taxpayers targeted in each wave directly, at least six months before the integration deadline.
Check whether your current solution supports Phase Two
Phase One (generation) is not enough. Phase Two requires the invoice to be generated as XML under UBL 2.1, with a digital signature, a UUID, and a live integration with the Fatoora platform. Ask your provider which plan integration starts from — not merely whether the feature exists.
Tell immediate invoices apart from cleared ones
A retail invoice (B2C) is reported to the platform within 24 hours of being issued. A business invoice (B2B) needs clearance from the platform before it is handed to the customer. If you sell to both, make sure both paths are supported.
Do not forget credit and debit notes
Returns and invoice amendments require notes linked to the original invoice, and they carry the same signing and integration requirements. This is a point usually discovered at the first return after going live.
Review your company and item data
Your VAT number, legal name and address must match your records at the Authority. Your items need correct units of measure and tax categories, because an invoice is rejected when a mandatory field is missing.
Test before the deadline, not on it
Integration is not a switch you flip: it covers issuing the cryptographic certificate, testing invoices in the sandbox environment, and handling rejections if they occur. Start well before the deadline.
Frequently asked questions
What is e-invoicing Wave 25?
It is the twenty-fifth group of taxpayers brought into Phase Two (linkage and integration). The Zakat, Tax and Customs Authority (ZATCA) published its criteria on 24 July 2026: it covers every taxpayer whose revenue subject to value added tax exceeded SAR 187,500 during 2022 or 2023 or 2024 or 2025, with integration with the Fatoora platform due by 1 February 2027 at the latest.
How do I know whether I am covered by Wave 25?
The test is whether revenue subject to value added tax exceeded SAR 187,500 in any of the years 2022 or 2023 or 2024 or 2025. The Zakat, Tax and Customs Authority (ZATCA) notifies the taxpayers targeted in each wave directly, at least six months before the integration deadline. So if you are targeted, a notification will reach you from the Authority, and you can also check through its official channels.
What is the difference between Wave 24 and Wave 25?
The difference is the revenue threshold and the integration deadline. Wave 24 covered taxpayers whose revenue exceeded SAR 375,000 during 2022 or 2023 or 2024, with a deadline of 30 June 2026. Wave 25 lowered the threshold to SAR 187,500 and added the year 2025, with a deadline of 1 February 2027 — so it reaches smaller businesses.
What does integrating with the Fatoora platform mean in practice?
It means your system sends every invoice to the Fatoora platform automatically, as digitally signed XML with a UUID. Retail invoices are reported within 24 hours, and business invoices are cleared before they are handed to the customer. None of this happens by hand — it needs a compliant solution to take care of it.
Is it enough to issue PDF invoices with a QR code?
No. That comes close to the Phase One requirements. Phase Two calls for a structured XML format, a digital signature and integration with the platform — none of which a PDF file or a spreadsheet provides.
What if I miss the deadline?
Non-compliance exposes the business to fines under the e-invoicing regulation and its implementing rules. For the exact categories and amounts, consult the schedule of violations and penalties published on the Zakat, Tax and Customs Authority (ZATCA) website, as it is updated from time to time.
Snad is ready for Phase Two
Digitally signed XML invoices with a QR code, integration with the Fatoora platform, and credit and debit notes linked to the original invoice — with integration built into the Pro plan. Try it free for 30 days, no credit card needed.