ZATCA e-invoicing Phase 2, Wave 25: are you in, and what to do before 1 February 2027

On 24 July 2026, ZATCA set the rule for the 25th group of Phase 2, the integration phase of e-invoicing. The group covers all businesses whose revenue subject to VAT exceeded SAR 187,500 in 2022, 2023, 2024 or 2025. One year above the line is enough. ZATCA will notify the targeted businesses, and they must integrate their e-invoicing solutions with the Fatoora platform by 1 February 2027.

Look at revenue subject to VAT, not profit and not cash received. A supply company that sold SAR 210,000 of taxable goods in 2024 is in, even if 2025 was a weaker year at SAR 150,000. A company that stayed under SAR 187,500 in all four years is not in this wave.

If you are not sure, read your filed VAT returns for each of the four years and add up the taxable sales. Then check your ZATCA account for a notification. If the numbers are close to the line, confirm with ZATCA before you decide you are out.

Phase 2 started on 1 January 2023 and reaches businesses in waves, each based on VAT-subject revenue in earlier years. The last three waves show how fast the line has dropped.

According to KPMG, Wave 23 covered revenue above SAR 750,000 in 2022, 2023 or 2024, with integration by 31 March 2026. ZATCA's own news shows Wave 24 covered revenue above SAR 375,000 in 2022, 2023 or 2024, with integration by 30 June 2026. Wave 25 halves that line again to SAR 187,500 and adds 2025 to the years checked.

For suppliers this is the first wave that reaches many small trading companies, workshops and distributors. If you sell to companies and charge VAT, the chance that one year of the four went above SAR 187,500 is real.

ZATCA says it will notify each later wave at least six months before its integration date. So if your revenue is below the line today, watch for the next announcement rather than assuming the program has ended.

Phase 1, the generation phase, has applied since 4 December 2021. It requires you to create and keep tax invoices and notes with an electronic solution that meets ZATCA's rules. Phase 2 adds integration: your solution connects to ZATCA, and invoices follow a set format with extra fields.

ZATCA's simplified guide shows two flows. For a tax invoice, which is the usual B2B invoice, you generate it, send it to ZATCA through your integrated solution, and ZATCA clears it and sends it back. Only then do you share the cleared invoice with the buyer and store it. For a simplified tax invoice, usually B2C, you share it with the buyer first and report it to ZATCA within 24 hours.

Both carry a QR code that the buyer can scan with ZATCA's VAT app, showing the seller name, VAT number, date and time, VAT amount and total. For a supplier who sells to companies, clearance is the step that changes daily work: an invoice is not final until ZATCA has cleared it.

ZATCA's guide lists five ways to prepare. Visit the e-invoicing pages on zatca.gov.sa. Understand the e-invoice fields. Get a compliant e-invoicing solution or upgrade the one you have. Test invoice generation before the enforcement date. Make sure your staff can use the solution.

Onboarding happens through the Fatoora portal. ZATCA notifies you of your wave, you log in to the portal, choose to onboard a device, generate a one-time password and enter it in your e-invoicing solution. After that, the solution can start issuing e-invoices. The detailed steps are in a separate guide on this site.

Work back from the date. Pick your solution in the first weeks, leave a month for testing with real invoice types such as credit notes and partial deliveries, and train the people who issue invoices. ZATCA also publishes a list of technology providers on its website if you do not have a solution yet.

ZATCA's simplified guide names five things to avoid. In Phase 1: issuing manual or handwritten invoices, issuing invoices that do not meet the e-invoicing requirements, using a solution that does not meet the requirements, and deleting e-invoices after you issue them. In Phase 2: issuing e-invoices from a solution that is not integrated with ZATCA.

The guide also lists functions a solution must not have. In Phase 1, these include no user management, the ability to tamper with invoices and records, and the ability to run more than one invoice sequence. In Phase 2, they include exporting the cryptographic stamp private key and changing the solution's date and time.

A common supplier mistake is keeping two systems: the integrated one for some invoices and an old spreadsheet or Word template for others. After your integration date, every tax invoice needs to come from the integrated solution. Penalties are set by ZATCA and covered in a separate article; check ZATCA's pages for the current rules.

ENTEK is not an e-invoicing solution for ZATCA and is not integrated with the Fatoora platform. Documents made on ENTEK are not tax invoices and do not cover your Phase 2 obligations. Your tax invoices must come from your own integrated solution.

What ENTEK does sits around the tax invoice. Your verified company profile holds your CR and VAT numbers, certifications, key personnel and official stamp, so buyers on ENTEK see the same VAT number that appears on your tax invoices. On ENTEK orders, you can submit invoices and generate stamped commercial documents: quotation, proforma, commercial invoice, packing list, COA, MSDS/TDS and contracts.

You can also see what you are owed and when you will be paid, with owed, expected payout and received amounts, which helps you match each ENTEK order to the tax invoice your own system issued. For anything about your wave or your integration, check with ZATCA. Use a ZATCA-compliant e-invoicing solution for your tax invoices.