Saudi Arabia’s e-invoicing programme has just reached its widest point yet. On 24 July 2026, the Zakat, Tax and Customs Authority (ZATCA) published the criteria for ZATCA Wave 25, and the revenue threshold is now half of what it was in the previous wave. Thousands of small and mid-sized businesses that never expected to connect to the Fatoora platform now have a firm date to meet.
At MHK Services, we help businesses turn compliance deadlines into manageable projects. In this guide, you will see who is covered, what the rules demand, and how to prepare before the date arrives.
The Problem: Wave 25 Pulls In Far More Businesses
Here is the core fact. This wave covers taxpayers whose VAT-subject revenue went above SAR 187,500 in 2022, 2023, 2024 or 2025. Wave 24 used a threshold of SAR 375,000, so the bar has been cut in half. It is also the first time ZATCA has counted 2025 revenue in its criteria.
Many owners read that figure and assume it does not apply to them. That assumption is risky. Because the test looks across four years, a business that crossed the line in 2022 and later slowed down can still be selected.
The ZATCA Wave 25 deadline is 1 February 2027. ZATCA notifies each wave at least six months in advance, so treat your notice as a starting gun, not a courtesy reminder. With under twelve weeks left from today, the window for a calm rollout is closing.
Key dates at a glance
- 30 June 2026: Wave 24 integration deadline (threshold SAR 375,000)
- 24 July 2026: Wave 25 criteria announced
- 1 February 2027: integration deadline for selected taxpayers
- Future waves: ZATCA gives at least six months’ notice
Who Must Comply with ZATCA e-invoicing Wave 25?
Not every business is affected, but many more are than you might expect. You are likely in scope if:
- You are a resident, VAT-registered business.
- Your VAT-subject revenue exceeded SAR 187,500 in any year from 2022 to 2025.
- You already issue Phase 1 (Generation Phase) e-invoices and now need to connect to ZATCA.
Retailers, contractors, clinics, trading firms and service providers can all fall into this group. Under ZATCA Wave 25, the sector does not matter; the revenue test does.
The simplest check is to compare your VAT returns for each of the four years against the threshold, then confirm your status in your ZATCA notification. If the numbers look borderline, our e-invoicing readiness support can help you review them before you commit to a software vendor.
What Missing the ZATCA Integration Deadline 2027 Could Cost You
Missing the ZATCA integration deadline 2027 is more than a paperwork slip. Invoices that are not cleared or reported correctly can stall customer payments and leave your finance team correcting records by hand. Financial penalties can follow, and a rushed January setup almost always costs more than a planned one in November.
Think about the practical squeeze. Software vendors get busier as deadlines approach. Sandbox testing needs time. Staff need training before the first live invoice goes out. Every week you wait removes a buffer you will later wish you had.
For businesses in ZATCA Wave 25, the real danger is not the technology; it is the delay. Starting early turns integration into a routine project instead of an emergency.
How Much Should Businesses Budget for ZATCA Phase 2 Integration?
Preparing for ZATCA Wave 25 involves more than purchasing e-invoicing software. Businesses should consider the overall cost of implementing and maintaining a compliant invoicing system. Planning the budget early can help avoid unexpected expenses as the February 2027 deadline approaches.
The total implementation cost may vary depending on business size, invoice volume, existing accounting infrastructure and the complexity of integration. Some businesses may only need a software upgrade, while others might require significant ERP modifications or additional technical support.
When estimating your budget, consider these potential expenses:
- Software subscription: Monthly or annual fees for an e-invoicing solution.
- System integration: Costs associated with connecting existing accounting or ERP software to the Fatoora platform.
- Data preparation: Time and resources required to review customer records, VAT details and invoice information.
- Employee training: Preparing finance, sales and administrative teams to use the updated invoicing process.
- Ongoing maintenance: Software updates, technical support and troubleshooting after implementation.
Businesses should request transparent quotations and confirm which services are included before selecting a provider. The lowest-priced solution may not always offer the best long-term value, particularly if additional integration or support charges apply.
At MHK Services, we encourage businesses to assess their operational requirements before committing to an implementation budget. A clear financial plan helps organisations manage their ZATCA e-invoicing integration without unnecessary costs or last-minute disruption.
A Simple ZATCA Phase 2 Integration Roadmap
Follow these five steps in order:
- Confirm your status: check revenue against the threshold and note the date on your ZATCA notice.
- Choose a compliant solution: pick e-invoicing software or an ERP plug-in that meets ZATCA’s Phase 2 technical specifications.
- Onboard to Fatoora: register your solution and generate the technical credentials (CSID) your system needs.
- Test in the sandbox: send sample invoices, credit notes and debit notes until every one passes validation.
- Train and go live: brief your sales and accounts staff, switch on production, and monitor rejections daily.
If you lack in-house technical capacity, a partner offering tax and compliance advisory can coordinate vendor selection, testing and staff training so nothing slips.
Your ZATCA e-invoicing Integration Checklist
Before you request vendor quotes, measure your readiness against the ZATCA Wave 25 requirements. Then work through this list:
- Revenue test documented for 2022 to 2025
- A named project owner in finance or IT
- Compliant software vendor shortlisted
- Fatoora portal access and CSID plan ready
- Invoice templates updated for the structured format
- Customer and supplier data cleaned, including VAT numbers
- Sandbox test cases written and signed off
- Staff training scheduled before go-live
- Archiving plan for invoices and logs
What Fatoora Integration Saudi Arabia Means for Your System
Fatoora integration Saudi Arabia means your invoicing system communicates directly with ZATCA’s platform through secure connections. Standard invoices for business customers are cleared by ZATCA before you share them with the buyer. Simplified invoices for consumers are reported within 24 hours of issue.
In practice, that changes daily habits. Invoices must follow a structured XML format, carry a QR code, and include a cryptographic stamp. A PDF on its own will no longer be enough. Finance teams should also expect to see validation errors and fix them quickly, so someone needs to own that daily review.
ZATCA Wave 25 Requirements You Cannot Skip
Keep these obligations in front of your team:
- Generate invoices in the approved structured format with all required fields.
- Add a QR code and cryptographic stamp to every invoice.
- Maintain an invoice counter and link each invoice to the previous one through a hash value.
- Clear or report invoices within the required time frame.
- Store invoices securely and keep them available for ZATCA.
These details are easy to get wrong, which is why a short review by compliance specialists before go-live pays off.
Common Mistakes to Avoid
- Waiting until the final month to choose software
- Treating Phase 1 compliance as enough
- Skipping sandbox tests for credit and debit notes
- Forgetting to train branch staff and cashiers
- Ignoring data quality, such as missing customer VAT numbers
Most of these are scheduling problems, not technical ones. A written plan with owners and dates prevents nearly all of them.
Conclusion:
Wave 25 is the broadest expansion of Saudi e-invoicing so far, and 1 February 2027 will arrive quickly. Confirm your status, pick a compliant solution, test thoroughly, and keep your ZATCA e-invoicing integration checklist within reach until go-live.
If you want a partner who treats ZATCA Wave 25 as a project rather than a panic, MHK Services is ready to help. Reach out for a tailored plan today.
Frequently Asked Questions
What is the ZATCA Wave 25 deadline?
Selected taxpayers must integrate with the Fatoora platform by 1 February 2027. ZATCA notifies each wave at least six months in advance.
Who is covered by ZATCA e-invoicing Wave 25?
Resident, VAT-registered businesses whose VAT-subject revenue exceeded SAR 187,500 in 2022, 2023, 2024 or 2025. ZATCA notifies each selected taxpayer directly.
Is ZATCA Phase 2 integration different from Phase 1?
Yes. Phase 1 covers generating e-invoices with a QR code, while Phase 2 requires connecting your system to ZATCA to clear or report each invoice.
What happens if I miss the ZATCA integration deadline 2027?
You may face financial penalties and disrupted invoicing. Check ZATCA’s e-invoicing regulations for the exact penalty schedule.
When should I start preparing?
Start now. You need time for vendor selection, sandbox testing and staff training before 1 February 2027.