ZATCA e-invoicing has reached many more Saudi businesses in 2026, and Wave 25 brings smaller VAT-registered companies into Phase 2. If your VAT-subject revenue crossed a modest threshold in recent years, you may need to connect your invoicing system to ZATCA's Fatoora platform by 1 February 2027. This guide explains who is covered, what integration involves and how to prepare without stress.
A quick recap of ZATCA e-invoicing
The Zakat, Tax and Customs Authority (ZATCA) introduced e-invoicing in Saudi Arabia in two phases:
- Phase 1 (generation): businesses had to issue invoices electronically from a compliant system, instead of handwritten or editable files.
- Phase 2 (integration): businesses must connect their invoicing system to ZATCA's Fatoora platform so invoice data is shared with the authority.
Phase 2 is not switched on for everyone at once. ZATCA rolls it out in waves, each based on revenue thresholds. Larger taxpayers went first, and each new wave reaches further down to smaller businesses. For example, the Wave 24 deadline was 30 June 2026.
ZATCA Phase 2 Wave 25 requirements
The criteria for Wave 25 were published on 24 July 2026. Here are the key ZATCA Phase 2 Wave 25 requirements in simple terms:
| Item | Wave 25 detail |
|---|---|
| Who is covered | Taxpayers whose VAT-subject revenue exceeded SAR 187,500 in any of 2022, 2023, 2024 or 2025 |
| Integration deadline | 1 February 2027 |
| How you are told | ZATCA notifies each targeted taxpayer |
| What to integrate | Your e-invoicing solution with the Fatoora platform |
Two points are worth stressing:
- "Any of" the years counts. If your revenue crossed SAR 187,500 in even one of those four years, you may fall within the wave, even if revenue dropped later.
- Watch for the ZATCA notification. ZATCA notifies the taxpayers it targets. Keep your contact details on the ZATCA portal up to date so you do not miss it, and confirm your status directly with ZATCA or your tax advisor.
What Phase 2 integration involves
Phase 1 was mostly about producing invoices from a proper system. Phase 2 is more technical, because your software has to talk to ZATCA. In general terms, integration usually involves:
- Structured invoice data: invoices are produced in the electronic format ZATCA specifies, not just as a PDF.
- Onboarding your solution: each invoicing system or device is registered with ZATCA and receives the security credentials it needs to send invoices.
- Cryptographic stamp and QR code: invoices carry security elements and a QR code that ZATCA's rules require.
- Clearance and reporting: standard tax invoices (business to business) are generally cleared by ZATCA before they are shared with the buyer, while simplified invoices (business to consumer) are reported to ZATCA after issue within the allowed time.
- Credit and debit notes: corrections must follow the same rules as the original invoice.
ZATCA publishes detailed technical guidelines and updates them from time to time. Always work from the current version, or use an integrator who tracks those changes for you.
Common problems businesses face
Most delays come from the same few issues:
- Old or offline software that cannot produce the required format or connect to the internet reliably.
- Several billing systems in one company (for example, a POS in shops and a separate system for wholesale), each needing its own onboarding.
- Messy master data, such as missing VAT numbers or incomplete addresses for B2B customers.
- No test phase, so errors appear only when real invoices start failing.
- Leaving it late, when integrators and IT teams are busiest close to the deadline.
A step-by-step plan to get ready
You have time before 1 February 2027, but it is wise to start early. A practical plan looks like this:
- Confirm whether you are in Wave 25. Check your VAT-subject revenue for 2022 to 2025 and look out for the ZATCA notification.
- List every system that issues invoices. Include POS terminals, ERP, e-commerce stores and any manual processes.
- Ask each software vendor about Phase 2 support. Find out whether integration is included, an add-on or not available.
- Clean your customer and product data. Make sure B2B buyers have correct VAT numbers and addresses.
- Test in a non-production environment. Send sample standard and simplified invoices, credit notes and debit notes before going live.
- Train your staff. Cashiers and accountants should understand what changes, including how to handle rejected invoices.
- Go live before the deadline, then monitor results in the first weeks.
Questions to ask your software vendor
Before you commit to any approach, put these questions to your current vendor or a new one:
- Is ZATCA Phase 2 integration included in my plan, or is it a separate project with its own cost?
- How many devices or branches can be onboarded, and who handles the onboarding?
- How are rejected or failed invoices shown to my staff, and how are they corrected?
- Will you update the software when ZATCA releases new technical guidelines?
- Can I test everything in a sandbox before my live invoices go through?
Clear answers to these questions tell you far more than a sales brochure. If a vendor cannot answer them confidently, plan for a backup option well before the deadline.
How CT Products can help with ZATCA e-invoicing
CT Products builds and integrates invoicing systems for businesses in Pakistan and Saudi Arabia. Our ZATCA e-invoice integration service connects your existing ERP, POS or billing software to ZATCA, so you do not have to replace a system that already works for you.
Our integration work includes:
- Reviewing your current software and invoice flow.
- Help with registration and credentials.
- Sandbox testing before production.
- Training for cashiers and accounts staff.
- Support when ZATCA changes its rules or specifications.
If your current software cannot be integrated, or you need something tailored to your operations, our team also offers custom enterprise software and custom app development. We also integrate systems with FBR and PRA in Pakistan, and the same careful, test-first approach applies to ZATCA.
Small businesses that want a ready-made option should also read our guide to ZATCA compliant invoicing software for small business. If you also trade in the Emirates, see our UAE e-invoicing 2026 guide.
Get started before the rush
The closer the deadline gets, the busier integrators become. Starting now gives you time to test properly and fix problems calmly. Message us on WhatsApp at +92 334 1839000, email info@ctproducts.net or use our contact page. Our team replies within one working day.
Frequently asked questions
Who is covered by ZATCA e-invoicing Wave 25?
Taxpayers whose VAT-subject revenue exceeded SAR 187,500 in any of 2022, 2023, 2024 or 2025. ZATCA notifies each targeted taxpayer, so confirm your status with ZATCA or your tax advisor.
What is the deadline for Wave 25?
Businesses in Wave 25 must integrate with the Fatoora platform by 1 February 2027.
Do I need to replace my current software for Phase 2?
Not always. Many existing ERP, POS and billing systems can be integrated with ZATCA. CT Products can review your software and connect it, or build a new solution if integration is not practical.
What is the difference between Phase 1 and Phase 2?
Phase 1 required invoices to be generated electronically from a compliant system. Phase 2 requires that system to be integrated with ZATCA's Fatoora platform so invoice data is shared with the authority.