10 August 2026 Saudi Arabia announces 25th wave of Phase 2 e-invoicing integration - Saudi Arabia's Zakat, Tax and Customs Authority announced, on 24 July 2026, the criteria for taxpayers to be included in the 25th wave of Phase 2 e-invoicing integration.
- Taxpayers resident in Saudi Arabia with a taxable turnover exceeding (SAR187,500) during 2022, 2023, 2024 or 2025 should prepare to comply with the Phase 2 e-invoicing requirements by 1 February 2027.
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On 24 July 2026, Saudi Arabia's Zakat, Tax and Customs Authority (ZATCA) announced on its website that taxpayers resident in Saudi Arabia with a taxable turnover exceeding 187,500Saudi Riyal (SAR 187,500, approximately US$50,000) during calendar year 2022, 2023, 2024 or 2025 will fall within the 25th wave of Phase 2 e-invoicing integration and should comply with the Phase 2 requirements. The ZATCA will notify the affected taxpayers in preparation for linking and integrating their electronic invoicing systems with the ZATCA's e-invoicing platform (Fatoora). Further, the ZATCA Governor issued Decision No. (1448-99-238) dated 07/02/1448 H, which was published in the Official Gazette on 2 4 July 2026 and mentions that taxpayers coming under the 25th wave should prepare to comply with the Phase 2 e-invoicing requirements starting from 1 February 2027. The Wave 25 announcement marks the first time that ZATCA has included calendar year 2025 revenues as a criterion for determining Phase 2 e-invoicing applicability. Consequently, taxpayers established during calendar year 2025, as well as those that did not exceed the relevant revenue thresholds in calendar year 2022, 2023 or 2024, may still fall within the scope of Phase 2 if their taxable revenues exceeded the prescribed threshold during calendar year 2025. Such taxpayers would be required to comply with the Phase 2 (Integration Phase) e-invoicing requirements within the applicable timeline. On 4 December 2020, the ZATCA introduced e-invoicing in Saudi Arabia, releasing the E-Invoicing Regulations. E-invoicing in Saudi Arabia is being implemented in two phases: - Phase 1, effective from 4 December 2021, mandates generation of e-invoices and e-notes, including related processing and record keeping.
- Phase 2, effective from 1 January 2023, mandates integration of a taxpayer's system with the ZATCA, along with the transmission of e-invoices and e-notes to the ZATCA. This phase is being implemented in waves. The criteria and timelines for the preceding 24 waves, which were previously announced, are:
| | Wave | Criteria | Timeline | | | 11 | Turnover of more than SAR3b during calendar year 2021 | 1 January 2023 to 30 June 2023 | | | 22 | Turnover of more than SAR500m up to SAR3b during calendar year 2021 | 1 July 2023 to 31 December 2023 | | | 33 | Turnover of more than SAR250m during calendar year 2021 or 2022 | 1 October 2023 to 31 January 2024 | | | 44 | Turnover of more than SAR150m during calendar year 2021 or 2022 | 1 November 2023 to 29 February 2024 | | | 55 | Turnover of more than SAR100m during calendar year 2021 or 2022 | 1 December 2023 to 31 March 2024 | | | 66 | Turnover of more than SAR70m during calendar year 2021 or 2022 | 1 January 2024 to 30 April 2024 | | | 77 | Turnover of more than SAR50m during calendar year 2021 or 2022 | 1 February 2024 to 31 May 2024 | | | 88 | Turnover of more than SAR40m during calendar year 2021 or 2022 | 1 March 2024 to 30 June 2024 | | | 99 | Turnover of more than SAR30m during calendar year 2021 or 2022 | 1 June 2024 to 30 September 2024 | | | 1010 | Turnover of more than SAR25m during calendar year 2022 or 2023 | 1 October 2024 to 31 December 2024 | | | 1111 | Turnover of more than SAR15m during calendar year 2022 or 2023 | 1 November 2024 to 31 January 2025 | | | 1212 | Turnover of more than SAR10m during calendar year 2022 or 2023 | 1 December 2024 to 28 February 2025 | | | 1313 | Turnover of more than SAR7m during calendar year 2022 or 2023 | 1 January 2025 to 31 March 2025 | | | 1414 | Turnover of more than SAR5m during calendar year 2022 or 2023 | 1 February 2025 to 30 April 2025 | | | 1515 | Turnover of more than SAR4m during calendar year 2022 or 2023 | 1 March 2025 to 31 May 2025 | | | 1616 | Turnover of more than SAR3m during calendar year 2022 or 2023 | 1 April 2025 to 30 June 2025 | | | 1717 | Turnover of more than SAR2.5m during calendar year 2022 or 2023 | 1 May 2025 to 31 July 2025 | | | 1818 | Turnover of more than SAR2m during calendar year 2022 or 2023 | 1 June 2025 to 31 August 2025 | | | 1919 | Turnover of more than SAR1.75m during calendar year 2022 or 2023 | 1 July 2025 to 30 September 2025 | | | 2020 | Turnover of more than SAR1.5m during calendar year 2022 or 2023 | 1 August 2025 to 31 October 2025 | | | 2121 | Turnover of more than SAR1.25m during calendar year 2022 or 2023 or 2024 | 1 September 2025 to 30 November 2025 | 2222 | Turnover of more than SAR1m during calendar year 2022 or 2023 or 2024 | 1 October 2025 and 31 December 2025 | | | 2323 | Turnover of more than SAR750,000 during calendar year 2022 or 2023 or 2024 | 1 January 2026 and 31 March 2026 | | | 2424 | Turnover of more than SAR375,000 during calendar year 2022, 2023 or 2024 | 1 April 2026 and 30 June 2026 |
The ZATCA has already notified resident businesses falling under the above waves to comply with Phase 2 of e-invoicing as per their applicable timelines. Based on the latest announcements, the ZATCA will begin notifying taxpayers who fall within the 25th wave of Phase 2 e-invoicing integration, to go live starting from 1 February 2027. Resident businesses should comply with the obligations of Phase 2 e-invoicing integration based on the ZATCA notification and undertake the relevant steps to make the required changes in their information technology systems. Taxpayers should comply with the Phase 2 requirements in line with the e-invoicing regulation to preclude possible penalties. Taxpayers who do not fall within the first 25 waves of Phase 2 e-invoicing integration should monitor future announcements from the ZATCA on the integration timeline period applicable to them in subsequent waves. | * * * * * * * * * * |
Endnotes1 See EY Global Tax Alert, Saudi Arabia releases final e-invoicing regulations for Phase 2, dated 24 June 2022. 2 See EY Global Tax Alert, Saudi Arabia announces second wave of Phase 2 e-invoicing integration, dated 28 December 2022. 3 See EY Global Tax Alert, Saudi Arabia announces third wave of Phase 2 e-invoicing integration, dated 24 March 2023. 4 See EY Global Tax Alert, Saudi Arabia announces fourth wave of Phase 2 e-invoicing integration, dated 2 May 2023. 5 See EY Global Tax Alert, Saudi Arabia announces fifth wave of Phase 2 e-invoicing integration, dated 30 May 2023. 6 See EY Global Tax Alert, Saudi Arabia announces sixth wave of Phase 2 e-invoicing integration, dated 20 June 2023. 7 See EY Global Tax Alert, Saudi Arabia announces seventh wave of Phase 2 e-invoicing integration, dated 31 July 2023. 8 See EY Global Tax Alert, Saudi Arabia announces eighth wave of Phase 2 e-invoicing integration, dated 24 August 2023. 9 See EY Global Tax Alert, Saudi Arabia announces ninth wave of Phase 2 e-invoicing integration, dated 21 November 2023. 10 See EY Global Tax Alert, Saudi Arabia announces 10th wave of Phase 2 e-invoicing integration, dated 4 April 2024. 11 See EY Global Tax Alert, Saudi Arabia announces 11th wave of Phase 2 e-invoicing integration, dated 29 April 2024. 12See EY Global Tax Alert, Saudi Arabia announces 12th wave of Phase 2 e-invoicing integration, dated 28 May 2024. 13 See EY Global Tax Alert, Saudi Arabia announces 13th wave of Phase 2 e-invoicing integration, dated 8 July 2024. 14 See EY Global Tax Alert, Saudi Arabia announces 14th wave of Phase 2 e-invoicing integration, dated 5 August 2024. 15 See EY Global Tax Alert, Saudi Arabia announces 15th wave of Phase 2 e-invoicing integration, dated 3 September 2024. 16 See EY Global Tax Alert, Saudi Arabia announces 16th wave of Phase 2 e-invoicing integration, dated 30 September 2024. 17 See EY Global Tax Alert, Saudi Arabia announces 17th wave of Phase 2 e-invoicing integration, dated 4 November 2024. 18 See EY Global Tax Alert, Saudi Arabia announces 18th wave of Phase 2 e-invoicing integration, dated 3 December 2024. 19 See EY Global Tax Alert, Saudi Arabia announces 19th wave of Phase 2 e-invoicing integration, dated 2 January 2025. 20 See EY Global Tax Alert, Saudi Arabia announces 20th wave of Phase 2 e-invoicing integration, dated 5 February 2025. 21 See EY Global Tax Alert, Saudi Arabia announces 21st wave of Phase 2 e-invoicing integration, dated 3 March 2025. 22 See EY Global Tax Alert, Saudi Arabia announces 22nd wave of Phase 2 e-invoicing integration, dated 26 March 2025. 23 See EY Global Tax Alert, Saudi Arabia announces 23rd wave of Phase 2 e-invoicing integration, dated 7 July 2025. 24 See EY Global Tax Alert, Saudi Arabia announces 24th wave of Phase 2 e-invoicing integration, dated 6 October 2025. | | * * * * * * * * * * | | Contact Information | For additional information concerning this Alert, please contact: Ernst & Young Professional Services (Professional LLC), Riyadh Ernst & Young Professional Services (Professional LLC), Jeddah Ernst & Young Professional Services (Professional LLC), Al Khobar EY Consulting LLC, Dubai Ernst & Young LLP (United States), Middle East Tax Desk, New York | | Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor |
Document ID: 2026-1705 |
