ZATCA E-Invoicing Wave 23 & 24 Deadlines: Everything Saudi Businesses Need to Know in 2026

 If you're running a business in Saudi Arabia and haven't taken ZATCA's e-invoicing compliance seriously yet, 2026 is your final call. With Wave 23 and Wave 24 now officially announced, the revenue thresholds have dropped low enough that thousands of SMEs are entering the mandatory scope for the very first time.



Let's break it all down.

A Quick Background — What Is ZATCA's E-Invoicing Framework?

Saudi Arabia rolled out its e-invoicing mandate (Fatoora) in two distinct phases:

Phase 1 – Generation Phase (December 4, 2021): All VAT-registered taxpayers were required to stop using handwritten or spreadsheet-generated invoices and adopt a compliant electronic invoicing system instead.

Phase 2 – Integration Phase (rolling out in waves from January 1, 2023): Businesses must now integrate their invoicing systems directly with ZATCA's Fatoora Platform. B2B invoices require real-time clearance, while B2C (simplified) invoices must be reported within 24 hours of issuance.

Phase 2 is being implemented in waves — each wave bringing in a new group of businesses based on their revenue threshold. Waves 1 through 22 already covered larger taxpayers with revenues above SAR 1.25 million. Now it's the turn of smaller businesses.

Wave 23 — Deadline: March 31, 2026

Who does it apply to?

Resident businesses in Saudi Arabia with VAT-subject revenues exceeding SAR 750,000 during the calendar years 2022, 2023, or 2024 fall under Wave 23 of Phase 2 e-invoicing integration.

Compliance window: ZATCA has specified that Wave 23 taxpayers must comply with Phase 2 requirements between January 1, 2026 and March 31, 2026, inclusive of both dates. 

What you need to do:

  • Integrate your ERP, POS, or accounting software with the Fatoora Platform

  • Issue invoices in XML or PDF/A-3 format

  • Apply a cryptographic stamp and include a UUID (Unique Universal Identifier) on every invoice

  • Add QR codes — mandatory for all B2C invoices

Wave 24 — Deadline: June 30, 2026

Wave 24 is arguably the most significant wave yet — because for the first time, the threshold has come down far enough to pull in a massive number of small and mid-sized businesses that were previously out of scope.

Who does it apply to?

Wave 24 includes all taxpayers whose VAT-subject revenues exceeded SAR 375,000 during 2022, 2023, or 2024 — and ZATCA will notify all targeted taxpayers to integrate their e-invoicing solutions with the Fatoora Platform by no later than June 30, 2026. ZATCA

Why this matters: For the first time, the threshold has dropped to SAR 375,000, bringing thousands of SMEs into the mandatory Phase 2 scope. Out2sol If your business has been operating comfortably below previous wave thresholds, it's time to check whether Wave 24 applies to you.

Penalty Waiver — A Window of Relief

ZATCA has extended its "Initiative to Cancel Fines and Exempt Taxpayers from Penalties" until June 30, 2026 — offering businesses a vital grace period to correct past compliance errors without taking a financial hit.

If there are gaps in your invoicing records or historical compliance issues, now is the best time to fix them — before the waiver expires.

Technical Requirements You Cannot Ignore

Whether you fall under Wave 23 or Wave 24, the following technical standards are non-negotiable:

Invoice Format: All invoices must be issued in XML or PDF/A-3 (with embedded XML). These machine-readable formats allow ZATCA's servers to automatically validate and verify every invoice.

Cryptographic Stamp: Each invoice must carry a cryptographic stamp to ensure authenticity and protect against tampering.

UUID: Every invoice needs a Unique Universal Identifier for traceability.

Real-Time B2B Clearance: Business-to-business invoices must be cleared on the Fatoora platform in real time before delivery to the buyer.

B2C Reporting: Simplified consumer invoices must be reported to ZATCA within 24 hours of issuance.

IP Whitelisting: Before integration, ZATCA requires that your server IP addresses be whitelisted to enable secure communication with the Fatoora portal. 

Mandatory Invoice Fields: Invoice number, customer VAT number, and total amount are validated instantly through API communication — missing fields will result in rejection.

Why You Should Start Preparing Right Now

ZATCA typically provides an advance notification period of approximately six months before the final deadline — which means the earlier you start, the smoother and more secure your transition will be. 

One thing many businesses discover too late is that their current system can "issue invoices" but cannot actually meet Phase 2's technical requirements — Fatoora integration, XML format generation, cryptographic stamping — without significant changes. Assessing your system now gives you the runway to make those changes without scrambling at the last minute.

Making Compliance Easier with ZYNO Books

Honestly, the biggest challenge with ZATCA compliance isn't understanding the regulations — it's making sure your accounting system can actually communicate with Fatoora in real time.

That's where ZYNO Books comes in. It's a cloud accounting software built for businesses operating in Saudi Arabia, and it handles the heavy lifting of ZATCA compliance so you don't have to.

Here's what makes it practical:

Built-in ZATCA-Compliant E-Invoicing — Generate and submit VAT-compliant e-invoices directly through Fatoora, without any third-party middleware or manual exports.

Real-Time Cloud Bookkeeping — Your finances are always up to date and accessible from anywhere. No more end-of-month scrambles or disconnected spreadsheets.

Automated Financial Reporting — From VAT reports to profit & loss, ZYNO Books gives you real-time insights into your business — the kind of clarity that cloud-based accounting software should offer.

Seamless Invoicing Workflow — Create professional invoices, track payments, manage purchase and sales orders, and stay on top of your cash flow — all from one centralized online accounting platform.

Audit Trail & Document Management — Every financial action is logged in a tamper-proof audit trail, which is exactly what ZATCA expects from a compliant business.

Whether you're being pulled into compliance by Wave 23 or Wave 24, the smartest move is to switch to a cloud accounting solution that's already built around ZATCA's requirements — rather than retrofitting an old system that wasn't designed for it.

Get ZATCA-ready before the deadline hits — explore ZYNO Books

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