Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) has moved closer to completing its nationwide rollout of mandatory electronic invoicing, with the latest wave of the Fatoora programme placing thousands of businesses under new compliance obligations before the end of Q2 2026.
Under the Phase 2 integration requirements, businesses registered for VAT with annual revenues exceeding SAR 375,000 must connect their invoicing systems directly to the Fatoora portal through certified electronic solutions by June 30, 2026. The announcement forms part of ZATCA’s Wave 24 rollout, representing one of the broadest expansions of the initiative since its launch in 2021.
What Wave 24 Requires
Phase 2 of the Fatoora programme — known as the integration phase — takes the Kingdom’s digital invoicing framework well beyond simple generation and storage. Businesses in scope must not only issue electronic invoices that meet ZATCA’s technical standards but must also integrate their billing software with ZATCA’s systems in real time. This allows the authority to clear and validate invoices as they are issued, creating a continuous, auditable record of transactions.
For B2B transactions, invoices must be submitted to ZATCA’s Fatoora platform for clearance before being sent to the buyer. For B2C simplified invoices — typically used in retail — businesses must report transactions within 24 hours. Both requirements apply under Phase 2 compliance.
ZATCA notifies affected taxpayer groups at least six months in advance of their wave deadline, giving businesses adequate time to select a certified e-invoicing solution, configure their systems, and complete onboarding through the authority’s portal.
The Business Case for Early Adoption
While the June 30 deadline applies to Wave 24 taxpayers specifically, the broader trajectory is clear: every VAT-registered business in Saudi Arabia will eventually fall within the scope of the Fatoora mandate. ZATCA has consistently expanded the programme in successive waves since Phase 2 enforcement began in January 2023, with each round capturing a new cohort of taxpayers based on annual revenue thresholds.
For businesses that have not yet begun their compliance journey, the authority has published detailed onboarding guides and a directory of certified e-invoicing providers on its official website. Failure to comply by the stipulated deadline exposes businesses to financial penalties under the Kingdom’s tax regulations.
Strengthening the Digital Economy
The Fatoora programme sits at the centre of Saudi Arabia’s broader ambition to build a transparent, technology-driven economy. By digitising the invoicing chain, ZATCA gains the ability to cross-reference transaction records, identify discrepancies, and reduce revenue leakage — all in support of the Kingdom’s fiscal diversification goals under Vision 2030.
The initiative has already yielded measurable results in earlier waves, with compliance rates consistently reported above the targets set at the outset. Officials have described the programme as one of the most advanced electronic invoicing deployments in the region, combining regulatory rigour with a phased approach designed to give businesses the time and tools to adapt.
With the June 30 deadline now firmly on the calendar, companies operating in Saudi Arabia are advised to prioritise their integration assessments and ensure their chosen solutions are fully certified before the window closes.
