ZATCA Announces Wave 25 of E-Invoicing: Threshold Halved to SAR 187,500, Integration Deadline 1 February 2027

• Lowest threshold yet, announced 24 July 2026 – On 24 July 2026, ZATCA published the criteria for Wave 25 of Phase 2 (the “Integration Phase”) of Saudi Arabia’s e-invoicing mandate, cutting the annual revenue threshold in half—from SAR 375,000 (Wave 24) to just SAR 187,500. Any taxpayer whose VAT-subject revenue exceeded this amount in any single year from 2022 through 2025 falls within scope, regardless of current turnover, bringing tens of thousands of small cafés, boutiques, freelancers, and service providers into the clearance model for the first time. [watily.com]
• Integration deadline of 1 February 2027, with six months’ notice – Affected taxpayers must integrate their e-invoicing systems with the Fatoora platform by 1 February 2027. Consistent with prior waves, ZATCA will notify targeted taxpayers directly at least six months before their integration date. Wave 25 follows immediately after Wave 24 (deadline 30 June 2026), with full enforcement—including penalties of SAR 5,000 to SAR 50,000—already in effect since 1 July 2026. [watily.com]
• Phase 2 technical requirements remain demanding – Integration goes well beyond Phase 1’s generate-and-store obligation. In-scope businesses must issue invoices in the approved UBL 2.1 XML format, apply cryptographic stamps and digital signatures, generate a UUID for each invoice, embed QR codes, and connect via secure API for real-time clearance of B2B invoices and 24-hour reporting of B2C simplified invoices. With over 1.7 million active commercial registrations in the Kingdom, Wave 25 is set to be the broadest compliance push in the Fatoora programme’s history. [watily.com]

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Saudi Arabia announces 25th wave of Phase 2 e-invoicing integration

• Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) announced the 25th wave of Phase 2 e-invoicing integration, requiring resident taxpayers with a taxable turnover exceeding SAR 187,500 during 2022, 2023, 2024, or 2025 to comply by February 1, 2027.
• This marks the first time 2025 revenue is used as a criterion, potentially including businesses established in 2025 or those that didn’t meet thresholds in prior years.
• Taxpayers notified by ZATCA must integrate their e-invoicing systems with ZATCA’s Fatoora platform to avoid penalties, while others should monitor future announcements for their integration timeline.

Source EY