The clock is ticking for businesses in Saudi Arabia! The transition to ZATCA Phase 2 E-Invoicing, the Integration Phase, is a mandatory rollout happening in continuous waves. It’s not a single deadline for everyone, which is why you need to check your status now.
What is the Big Deal about ZATCA Phase 2?
ZATCA Phase 2 is all about connecting your invoicing system directly to the government’s system (the FATOORA platform).
- Phase 1 was about Generation (creating a compliant e-invoice with a QR code).
- Phase 2 is about Integration (automatically sending that invoice data to ZATCA for validation and reporting).
It’s a move toward real-time tax governance, a major step in Saudi Arabia’s digital transformation!
How to Check if You’re in the Next Wave (The Simple Rule)
ZATCA determines your compliance wave based on one factor: Your Annual Taxable Turnover.
They started with the largest companies (SAR 3 Billion+) and are progressively moving down to smaller businesses.
Look at Your Turnover: The Current Target Range
The key is to look at your taxable revenues from the most recent calendar years (usually 2022, 2023, or 2024).
As of the latest announcements, ZATCA is actively targeting and notifying businesses with turnovers significantly below the initial high thresholds. Compliance waves are now reaching businesses with taxable revenues as low as SAR 1 Million and even lower.
| Recent Target Wave Example | Turnover Criteria | Compliance Deadline Example |
| Wave 22 | More than SAR 1 Million | End of December 2025 |
| Wave 23 | More than SAR 750,000 | End of March 2026 |
Disclaimer: These are examples based on past announcements. Always check the official ZATCA portal and the specific notification sent to your registered email for your exact deadline.
Why You Must Act NOW, Even If You’re Not Notified Yet
You might think, “My deadline is months away,” but the integration process is complex and takes time!
- System Upgrade: You need a truly ZATCA Phase 2-compliant ERP or invoicing solution. Your old system likely won’t cut it.
- Integration Time: Connecting your system to the FATOORA platform requires technical expertise, testing, and approval. This isn’t a weekend job!
- Risk of Fines: Non-compliance with ZATCA Phase 2 means facing stiff financial penalties. Proactive compliance is the only way to safeguard your business.
Don’t let compliance become a crisis. Start assessing your systems today to ensure you’re ready when your ZATCA Phase 2 wave arrives!
Is your team overwhelmed by the technical specifications?
Contact us on +966 56 927 1692 for seamless integration