Wave 21: Compliance with Phase 2 of E-invoicing in Saudi Arabia
Taxpayers included in wave 21 of Phase 2 – also known as the Integration Phase – in the Kingdom of Saudi Arabia are mandated to comply as soon as possible with ZATCA’s requirements for E-invoicing in KSA. According to the official announcement by ZATCA, the compliance deadline for taxpayers included in wave 21 is November 30, 2025. This applies to taxpayers whose annual taxable revenue (VAT) exceeded 1.25 million Saudi Riyals (SAR) during the calendar years 2022, 2023, or 2024.
ZATCA Integration Importance: Phase 2 of E-Invoicing (Integration Phase)
Complying with the e-invoicing system requirements to integrate with ZATCA for Phase Two of E-invoicing (Integration Phase) is mandatory for all taxpayers included in wave 21 in Saudi Arabia. Consequently, integrating with ZATCA’s FATOORA platform is an essential step for compliance and for avoiding penalties resulting from not complying on time. ZATCA has managed Phase 2 compliance in waves and with a notice period of 6 months prior to enable taxpayers to ensure their establishments are ready on time.
Essential E-Invoice Requirements for Phase Two with ZATCA
The most prominent requirements included in Phase Two of e-invoicing in Saudi Arabia are:
- Mandatory integration with the “FATOORA” platform of
- Adhering to the specified standards for the e-invoice format, for a tax invoice or a simplified tax invoice (in XML or PDF/A-3 format).
- Inclusion of the Quick Response (QR) Code on every issued electronic invoice.
- Including additional fields required by ZATCA according to Phase 2 requirements.
- Ensuring the compatibility of accounting systems, financial systems, or any other system used by the establishment with the updated technical standards.
How Do Wave 21 Taxpayers Ensure Compliance with ZATCA for Phase 2?
Compliance for establishments included in wave 21 of Phase 2 starts by identifying the type of system implemented within the establishment. Entities that rely on accounting, financial, or other systems can link their systems directly with ZATCA through several available options, including the following:
- Choosing an e-invoicing solutions provider qualified by ZATCA for Phase 2 to offer e-invoicing integration solutions, such as InvoiceQ.
- Using an e-invoicing system that adheres to the requirements of Phase 2 (Integration Phase) of the e-invoicing system in the Kingdom of Saudi Arabia.
At InvoiceQ, we provide our clients with both options: either using our centralized e-invoicing system to issue, receive, and manage electronic invoices if the client does not have a system, or using an integration solution depending on the type of ERP or accounting system the taxpayer operates on, without the need to change it.
Key Considerations When Choosing a Tax E-Invoicing System
- Compliance with Updates: The system’s ability to keep up with the requirements and updates from ZATCA for Phase Two.
- Direct Integration: The ability to send invoices to ZATCA immediately upon issuance via a secure and direct integration option.
- Ease of Use: A user-friendly interface that allows users of various levels to easily create compliant tax e-invoices.
- System Integration: Flexibility to integrate with accounting systems. financial systems, and Point-of-Sale (POS) devices to ensure seamless data flow.
- Continuous Support: Providing quick technical support and regular updates to maintain compliance and ensure operational stability.
- Security: Implementing the highest security standards to protect the data of establishments, customers, and financial transactions.
- Reporting: Availability of accurate and comprehensive reports that assist in analysis and confident decision-making.
Our Clients
Wave 21 Integration Via InvoiceQ
With InvoiceQ, taxpayers’ compliance with ZATCA has become easier than ever. Our simple and flexible solutions provide accurate tools and services specially designed to every business needs. Contact our team of experts today and get a free demo to learn how to seamlessly integrate your establishment with the Authority.
