Update, 18 September 2026: the Wave 24 deadline (30 June 2026) has passed. The current cohort is Wave 25: VAT-subject revenue over SAR 187,500 in any of 2022, 2023, 2024 or 2025, with integration due by 1 February 2027 (ZATCA news, 2026). The checklist below still applies; the Saudi offer is on xrero.com/saudi.
ZATCA's wave-based rollout of Phase 2 e-invoicing has now reached the smallest threshold to date. With Wave 24, the Zakat, Tax and Customs Authority (ZATCA) has pulled a large group of Saudi small and medium businesses into the Integration Phase of the FATOORA programme — many of them for the first time. If your VAT-subject revenue exceeded SAR 375,000 in 2022, 2023 or 2024, this wave almost certainly applies to you.
The deadline is concrete: affected taxpayers must integrate (link) their e-invoicing systems with ZATCA's Fatoora platform no later than 30 June 2026. That is not a soft target. Phase 2 is a technical integration requirement, and the onboarding window — roughly 1 April to 30 June 2026 — is when you generate cryptographic credentials, test your invoices against ZATCA's sandbox, and switch to live clearance and reporting.
This guide explains who Wave 24 covers, the difference between Phase 1 and Phase 2, and a practical checklist to get ready. One quick note on the name: Xrero (اكسريرو) is a Dubai-based ERP and accounting platform — it is not Xero, the separate New Zealand company. Xrero serves companies in the UAE and Saudi Arabia: for Saudi businesses it ships ZATCA Phase 2 e-invoicing — clearance for tax invoices, reporting for simplified invoices, credit and debit notes — tested on ZATCA's developer sandbox on 18 September 2026. SIF International, Xrero’s provider in Saudi Arabia, applied on 28 September 2026 to be listed in ZATCA’s indicative e-invoicing solution-provider list, which ZATCA says is not an approval of the solutions; the application is under review; details on xrero.com/saudi.
Key takeaway: If your VAT-subject revenue topped SAR 375,000 in 2022, 2023 or 2024, Wave 24 applies — and you must integrate your billing system with ZATCA's Fatoora platform by 30 June 2026. Phase 2 is not just "e-invoices"; it requires structured XML, a cryptographic stamp, a UUID, and live clearance or reporting through Fatoora.
New for Saudi Arabia: ZATCA E-Invoicing Penalties 2026: Every Violation, Every Fine, How to Stay Clear (28 September 2026)
Who is in scope for Wave 24?
ZATCA's official announcement (made around 26 September 2025) confirmed that Wave 24 targets every taxpayer whose revenues subject to VAT exceeded SAR 375,000 during 2022, 2023, or 2024. The threshold is met if any one of those three years crossed SAR 375,000 — you do not need to have exceeded it in all three.
This is the lowest threshold ZATCA has used since Phase 2 began rolling out in waves from January 2023. Earlier waves started at much higher revenue bands, so Wave 24 captures a far broader set of SMEs that previously only had to comply with Phase 1.
How to confirm your wave
ZATCA notifies affected taxpayers directly. If you have received a notification, or your VAT-subject revenue in any of 2022–2024 exceeded SAR 375,000, treat yourself as in scope and plan to integrate before 30 June 2026. When in doubt, check your status on the official ZATCA / Fatoora portal at zatca.gov.sa.
Phase 1 vs Phase 2: what actually changes
It helps to be precise about what each phase requires, because "e-invoicing" means very different things in Phase 1 and Phase 2.
| Aspect | Phase 1 — Generation | Phase 2 — Integration |
|---|---|---|
| In effect since | 4 December 2021 | 1 January 2023, rolled out in waves |
| Core requirement | Generate and store invoices electronically in a structured format; no paper or handwritten invoices | Integrate your e-invoicing solution with ZATCA's Fatoora platform for clearance and reporting |
| Mandatory invoice fields | Seller name, VAT number, timestamp, total VAT, total with VAT | All Phase 1 fields plus a cryptographic stamp and a UUID |
| Format | Structured electronic format | XML, or PDF/A-3 with embedded XML |
| Connection to ZATCA | None required | Real-time / near-real-time link to Fatoora; simplified invoices and related notes reported within 24 hours of issuance |
In short, Phase 1 was about getting off paper. Phase 2 is about connecting your system to the government in real time — standard (B2B) invoices go through clearance before they reach the buyer, while simplified (B2C) invoices are reported to Fatoora within 24 hours of being issued.
A practical readiness checklist
- Confirm scope. Check whether your VAT-subject revenue exceeded SAR 375,000 in 2022, 2023 or 2024, and whether ZATCA has notified you.
- Choose a compliant solution. Make sure your billing or ERP system can produce ZATCA-compliant XML, apply the cryptographic stamp, and attach a UUID.
- Onboard during the window. Use the ~1 April to 30 June 2026 onboarding period to generate credentials (CSID) and connect to Fatoora.
- Test before go-live. Validate sample standard and simplified invoices against ZATCA's environment before switching to production.
- Train your team. Cashiers and accounts staff should understand clearance (standard invoices) versus 24-hour reporting (simplified invoices).
- Keep your VAT basics correct. The standard Saudi VAT rate is 15%, in effect since 1 July 2020 — make sure your tax codes reflect it.
- Hit the deadline. Be fully integrated by 30 June 2026.
How Xrero helps
Xrero (اكسريرو) is an all-in-one cloud ERP and accounting platform for the UAE and Saudi Arabia, priced for Saudi businesses at SAR 101 per user per month before VAT, with a 15-day trial (included); the subscription is billed in UAE dirhams (AED 1 ≈ SAR 1.02). For Saudi businesses, Xrero ships ZATCA Phase 2 e-invoicing — clearance for tax invoices, reporting for simplified invoices, credit and debit notes — tested on ZATCA's developer sandbox on 18 September 2026. SIF International, Xrero’s provider in Saudi Arabia, applied on 28 September 2026 to be listed in ZATCA’s indicative e-invoicing solution-provider list, which ZATCA says is not an approval of the solutions; the application is under review; details on xrero.com/saudi.
To be clear and honest about what that means: Xrero serves companies in the UAE and Saudi Arabia: for Saudi businesses it ships ZATCA Phase 2 e-invoicing — clearance for tax invoices, reporting for simplified invoices, credit and debit notes — tested on ZATCA's developer sandbox on 18 September 2026. SIF International, Xrero’s provider in Saudi Arabia, applied on 28 September 2026 to be listed in ZATCA’s indicative e-invoicing solution-provider list, which ZATCA says is not an approval of the solutions; the application is under review; details on xrero.com/saudi. Your obligation to integrate correctly and on time remains yours.
If you would like a partner to walk through your setup, our team can help. Learn more on the Saudi site of SIF International, Xrero's provider in Riyadh, at sif.xrero.com, or review Saudi plans in SAR on the Saudi pricing page.
The Wave 24 deadline (30 June 2026) has passed; Wave 25 must integrate by 1 February 2027. Get your ZATCA Phase 2 setup ready now.
Start your 15-day trialOr call our Saudi line: +966 54 775 0700
Frequently asked questions
Am I in Wave 24?
You are in scope if your revenue subject to VAT exceeded SAR 375,000 in 2022, 2023 or 2024 — any one of those three years is enough. ZATCA also notifies affected taxpayers directly, so check for a notification and confirm your status on zatca.gov.sa.
What is the Wave 24 deadline?
Affected taxpayers must integrate their e-invoicing systems with the Fatoora platform no later than 30 June 2026. The onboarding window ran roughly from 1 April 2026 to 30 June 2026. Update, September 2026: that deadline has passed; the current cohort is Wave 25: VAT-subject revenue over SAR 187,500 in any of 2022, 2023, 2024 or 2025, with integration due by 1 February 2027.
What is the difference between Phase 1 and Phase 2?
Phase 1 (Generation, from 4 December 2021) required generating and storing structured electronic invoices instead of paper. Phase 2 (Integration, from 1 January 2023, in waves) additionally requires connecting your system to ZATCA's Fatoora platform, using XML (or PDF/A-3 with embedded XML), a cryptographic stamp, and a UUID, with clearance for standard invoices and 24-hour reporting for simplified invoices.
What is the standard VAT rate in Saudi Arabia?
The standard VAT rate administered by ZATCA is 15%, in effect since 1 July 2020. It applies to most goods and services, with exports zero-rated and certain categories exempt.
Is Xrero ZATCA certified?
No. SIF International, Xrero’s provider in Saudi Arabia, applied on 28 September 2026 to be listed in ZATCA’s indicative e-invoicing solution-provider list, which ZATCA says is not an approval of the solutions; the application is under review. Xrero does ship ZATCA Phase 2 e-invoicing for Saudi businesses (clearance and reporting), tested on ZATCA's developer sandbox on 18 September 2026; details on xrero.com/saudi. No software makes your business compliant by itself; the obligation to integrate correctly and on time is yours.
Is Xrero the same as Xero?
No. Xrero (اكسريرو) is a separate Dubai-based ERP and accounting platform for the UAE and Saudi Arabia. Xero is a different company based in New Zealand. They are not affiliated.
This is general information, not tax or legal advice — verify current rules with ZATCA (zatca.gov.sa) or a licensed advisor before acting.