ZATCA has announced Wave 25 of the e-invoicing integration phase, and the threshold has been cut in half: any business whose VAT-able revenue exceeded SAR 187,500 in any year from 2022 to 2025 must connect its invoicing to the Fatoora platform by 1 February 2027.
Who Wave 25 covers
- Threshold: VAT-able revenue above SAR 187,500, down from SAR 375,000 in the previous wave.
- Qualifying years: any single year of 2022, 2023, 2024 or 2025. Crossing it once brings you in, even if revenue fell later.
- Deadline: integration with Fatoora by 1 February 2027.
- Notice: ZATCA notifies businesses in scope directly — but don't wait for it to start.
What it takes technically
Phase 2 is more than a QR code on a printed invoice. Your system connects to Fatoora through an API and issues every invoice as structured XML (UBL 2.1), with a unique ID, a cryptographic stamp and a QR code.
- Business invoices (B2B) are cleared by the platform before they reach the customer.
- Simplified invoices (B2C) are reported to the platform within 24 hours.
- Before going live: onboard with a ZATCA-issued certificate and test in the simulation environment.
Three ways to get ready
- An approved off-the-shelf accounting system: fastest if your operations are simple — check it supports Phase 2, not just Phase 1.
- Connect your current system: a custom sales or inventory system can get a Fatoora layer without being replaced.
- A new custom system: worth it only if your finance cycle doesn't fit ready-made tools, or invoicing needs your own approvals and reports.
A realistic timeline
The integration itself can take weeks; the real time goes into cleaning data — customer names and VAT numbers, product items, tax settings. Start at least three months ahead and leave a full month for testing in the simulation environment.