Saudi Arabia: ZATCA’s e-invoicing Wave 25 covers VAT revenue over SAR 187,500, with Fatoora integration due by 1 February 2027

Saudi Arabia: ZATCA’s e-invoicing Wave 25 covers VAT revenue over SAR 187,500, with Fatoora integration due by 1 February 2027

2 October 2026: Saudi Arabia's Zakat, Tax and Customs Authority (ZATCA) has set the selection criteria for the twenty-fifth wave of the e-invoicing "Integration Phase". It covers "all taxpayers whose revenues subject to VAT exceeded (SAR 187,500) during 2022, 2023, 2024 or 2025". Taxpayers in the wave will be notified by ZATCA and must integrate their e-invoicing solutions with the Fatoora platform by 1 February 2027.

Why this wave matters

SAR 187,500 is the voluntary VAT registration threshold, so Wave 25 reaches down to some of the smallest VAT-registered businesses in the kingdom. Earlier waves covered larger taxpayers in steps. A business that crossed the threshold in any one of four years is included, even if revenue has since fallen.

Phase Two of e-invoicing, the Integration Phase, is more than issuing electronic invoices. Invoices must be generated in the prescribed format with the required fields, and the solution must connect to Fatoora so that invoices are cleared or reported to ZATCA. ZATCA says it gives at least six months' notice before each wave.

Who should act

• Small and medium businesses registered for VAT, including foreign businesses registered in Saudi Arabia, should check their taxable revenue for each year from 2022 to 2025 against the threshold, and watch for ZATCA's notification.
• Accounting, ERP and point-of-sale software vendors selling into Saudi Arabia should confirm that their product is integration-ready for Fatoora, with onboarding guidance for small clients; many of these businesses will be using simple invoicing tools.
• Accountants and outsourced finance providers should plan onboarding for clients in the wave before the end of 2026.

What to do

1. Confirm whether you meet the criteria and, if so, watch for ZATCA's notification.
2. Choose or upgrade an e-invoicing solution that supports the Integration Phase and Fatoora onboarding.
3. Complete onboarding of the solution with Fatoora and test it before going live.
4. Train staff who issue invoices, credit notes and debit notes.
5. Go live comfortably before 1 February 2027.

Sources

• ZATCA: ZATCA determines the criteria for selecting taxpayers in the twenty-fifth wave of e-invoicing integration phase - 24 July 2026
• KPMG Tax News Flash - read 5 October 2026