The Kingdom of Saudi Arabia’s ZATCA E-Invoicing initiative, specifically Phase 2 (The Integration Phase), is rolling out across the entire business landscape. Unlike Phase 1, where you just needed to issue electronic invoices, Phase 2 requires your business system to be integrated directly with ZATCA’s platform, Fatoora, for real-time reporting.
This mandate is not a one-time deadline for everyone. It is being implemented in a series of waves based on your company’s taxable revenue. Missing your designated wave deadline can lead to penalties and disruption, so knowing your date is the most critical first step in compliance.
Here is a simple, three-step guide to help you figure out your ZATCA Phase 2 integration deadline and what you need to do next.
Step 1: Understand the Core Criteria of ZATCA
ZATCA’s method for grouping businesses into waves is straightforward: it is determined by your Annual Taxable Revenue subject to VAT. The general rule is: the larger your revenue, the earlier your integration deadline.
How to calculate your relevant turnover:
- Look at your total taxable revenue (sales subject to VAT) for the calendar years 2022 and 2023.
- You must use the higher of these two years to determine your threshold. For the latest waves, ZATCA may also consider 2024.
- The wave criteria are announced progressively, moving down from the largest companies to smaller enterprises.
Example: If your taxable revenue was SAR 8 million in 2022 and SAR 12 million in 2023, you must use SAR 12 million to check your wave eligibility.
Step 2: Find Your Wave and Integration Deadline
ZATCA announces new waves regularly, notifying the businesses included at least six months in advance. While ZATCA sends official notifications via email and posts them on their website, you can generally pinpoint your deadline by checking the turnover thresholds.
Here is a snapshot of the most recent and upcoming integration waves announced by ZATCA, based on annual taxable revenue from 2022 or 2023:
| Wave Number | Taxable Turnover Threshold (SAR) | Compliance Start Date (Integration Deadline) |
| Wave 11 | > 15 Million | January 31, 2025 |
| Wave 12 | > 10 Million | February 28, 2025 |
| Wave 13 | > 7 Million | March 31, 2025 |
| Wave 14 | > 5 Million | April 30, 2025 |
| Wave 15 | > 4 Million | May 31, 2025 |
| Wave 16 | > 3 Million | June 30, 2025 |
| Wave 17 | > 2.5 Million | July 31, 2025 |
| Wave 18 | > 2 Million | August 31, 2025 |
| Wave 19 | > 1.75 Million | September 30, 2025 |
| Wave 20 | > 1.5 Million | October 31, 2025 |
| Wave 21 | > 1.25 Million | November 30, 2025 |
| Wave 22 | > 1 Million | December 31, 2025 |
Step 3: Action Plan – Preparing for Integration
Once you have identified your wave deadline, the countdown begins. Phase 2 integration is a technical project, not just a matter of installing a simple app. It involves linking your business’s central system, your ERP software, directly to ZATCA’s Fatoora portal.
To prepare effectively, you must focus on your core technology:
1. Get a ZATCA-Compliant ERP System
Your accounting or billing system must be capable of generating invoices that include the Phase 2 requirements, such as the Cryptographic Stamp and unique identifiers. This is where a ZATCA-certified solution becomes essential.
The Best ERP software in Saudi Arabia for ZATCA compliance is one that is pre-tested and approved. It must handle the secure generation of electronic invoices, use the required XML/PDF/A-3 formats, and manage the real-time or near-real-time transmission of data to ZATCA.
2. Onboarding and Testing
Your implementation process will involve:
- Onboarding your EGS (E-Invoicing Generation Solution) unit through the Fatoora Portal to get the cryptographic stamp ID.
- API integration between your ERP and ZATCA’s system.
- Extensive testing to ensure every invoice is cleared (for B2B) or reported (for B2C) successfully and instantly.
3. Don’t Wait for the Last Minute!
ZATCA gives you a six-month window from the announcement date to the implementation deadline. Do not mistake this for a long grace period! This time is crucial for you to select a vendor, upgrade your software, and complete the technical integration and testing. The shorter the time before your wave, the higher the risk of delays and non-compliance.
The clock is ticking. Being compliant is mandatory, but being prepared is smart business.
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