Integration with ZATCA Phase Two
The Zakat, Tax and Customs Authority – ZATCA – has announced the inclusion of Wave 24 under Phase Two of E-invoicing implementation in Saudi Arabia, with a mandatory deadline to complete integration with ZATCA by 30 June 2026. Wave 24 includes all organizations whose annual taxable revenues exceeded SAR 375,000 during any of the years 2022, 2023, or 2024.
Who is Included in Wave 24?
According to ZATCA’s announcement regarding Phase Two waves, Wave 24 includes:
- Establishments with revenues exceeding SAR 375,000
- During 2022, 2023, or 2024
- Registered for VAT in Saudi Arabia
This means that the scope of mandatory compliance now extends to a broad segment of small and medium-sized enterprises across the Kingdom.
What Does Phase Two of E-invoicing in Saudi Arabia Mean?
Phase Two (Integration Phase) differs significantly from Phase One (The Generation Phase). In Phase One, taxpayers were required to issue electronic invoices and include a QR code mandatory or optional depending on the invoice type (standard or simplified).
In Phase Two of E-invoicing in Saudi Arabia, taxpayers are now required to:
- Issue invoices in the approved XML format
- Include a QR code on all invoices (mandatory)
- Apply digital signatures
- Generate a UUID for each invoice
- Establish direct technical integration with ZATCA through the Fatoora platform
- Submit invoices in real time or within the defined timeframe depending on invoice type
This means compliance is no longer limited to using an internal invoicing system; it requires direct technical integration with ZATCA.
What Happens if You Fail To Comply on Time?
Failure to comply may result in:
- Financial penalties
- Rejection of non-compliant invoices
- Disruption of financial operations
- Regulatory violations
Additionally, business activities may be impacted. Therefore, it is essential to begin the integration process early to avoid last-minute technical and operational challenges.
Steps to Integrate with ZATCA for Wave 24
To comply with Phase Two requirements, taxpayers should:
- Choose a ZATCA-compliant E-invoicing solution
- Activate digital certificates and electronic signatures
- Configure the Sandbox environment
- Test invoice submissions
- Move to the Production environment
- Issue and receive invoices according to technical requirements for standard and simplified tax invoices
Why Should Affected Businesses Start Now?
As the 30 June deadline approaches, pressure increases on:
- T teams
- E-invoicing solution providers
- Digital certificate approval processes
Starting early ensures:
- Smooth implementation without urgency
- Reduced technical risks
- Full compliance with ZATCA requirements
- Financial and operational stability
Integrate with ZATCA Through InvoiceQ
Complying with Phase Two of E-invoicing in Saudi Arabia requires a fully compliant E-invoicing solution aligned with ZATCA’s technical and regulatory requirements.
InvoiceQ enables you to:
- Perform direct technical integration with ZATCA via secure integration solutions
- Manage, send, and receive invoices through the InvoiceQ E-invoicing platform
- Issue invoices in the approved XML format
- Automatically apply digital signatures and generate UUIDs
- Submit invoices instantly to the ZATCA platform
- Stay compliant with any updates related to Phase Two requirements
Compliant E-invoicing is not only about issuing an electronic invoice, it is about ensuring secure and stable integration with ZATCA without disrupting your existing ERP, POS, or accounting systems.
Conclusion
The announcement of Wave 24 represents another step in expanding the implementation of Phase Two of E-invoicing in Saudi Arabia. Businesses whose annual taxable revenues exceeded SAR 375,000 during 2022, 2023, or 2024 must complete integration with ZATCA before 30 June 2026 in accordance with the approved technical requirements.
Taking early action ensures operational stability, minimizes regulatory risks, and guarantees full compliance with ZATCA requirements without last-minute pressure.
