ZATCA E-Invoicing Wave 24: Is Your Business Required to Integrate before 30 June 2026?

Last updated: June 2026

ZATCA wave 24 e-invoicing 2026 is the Saudi compliance question many smaller VAT-registered businesses can no longer ignore. ZATCA announced that Wave 24 covers taxpayers whose VAT-taxable revenue exceeded SAR 375,000 during 2022, 2023, or 2024, and targeted taxpayers must integrate their e-invoicing solutions with the Fatoora platform by no later than 30 June 2026.

This is not simply a software upgrade from PDF invoices. Phase 2, known as the Integration Phase, requires compliant invoice formats, added invoice fields, integration with ZATCA systems, and different workflows for standard tax invoices and simplified tax invoices. A business that waits until the last week may discover that customer master data, VAT numbers, ERP configuration, certificates, XML validation, or point-of-sale connectivity are not ready.

This article is general information only, not tax, legal, accounting, or technical implementation advice. ZATCA scope, notices, and integration requirements depend on your taxpayer profile, VAT records, systems, and transaction types. Confirm your status through ZATCA, your official notices, and qualified Saudi tax and technology advisors.

What Wave 24 Means

Wave 24 is part of Saudi Arabia's Phase 2 e-invoicing rollout. It brings a new group of taxpayers into the Integration Phase based on VAT-taxable revenue above SAR 375,000 in any of the years 2022, 2023, or 2024.

The official ZATCA announcement is direct on the two numbers that matter most: SAR 375,000 and 30 June 2026. If your taxable revenue exceeded SAR 375,000 during 2022, 2023, or 2024, and ZATCA targets you in Wave 24, your e-invoicing solution must be integrated with Fatoora by the deadline.

The practical effect is that many small and medium businesses that were previously only dealing with Phase 1 requirements now need to prepare for Phase 2. Phase 1 required generation and storage of e-invoices through compliant electronic solutions. Phase 2 adds integration with ZATCA's systems, specific formats, and additional invoice fields.

For international founders, this can feel different from the UAE Corporate Tax timeline. A UAE company may be reviewing UAE Small Business Relief for Corporate Tax, while its Saudi branch, subsidiary, or Saudi customer-facing entity may be pulled into a technical invoice integration project. The two projects involve different authorities, systems, taxes, and deadlines.

Who Is Required to Integrate before 30 June 2026?

The first scope test is revenue. Wave 24 includes taxpayers whose revenue subject to VAT exceeded SAR 375,000 during 2022, 2023, or 2024. The test is not limited to 2024 only, and it is not a three-year average.

Use this decision path:

1. Confirm that the entity is a taxpayer subject to Saudi VAT and e-invoicing rules.
2. Extract VAT-taxable revenue for 2022, 2023, and 2024.
3. Check whether any one of those years exceeded SAR 375,000.
4. Review ZATCA notices, portal messages, registered email, and tax representative communication.
5. Identify every system that issues invoices, debit notes, credit notes, or receipts.
6. Confirm whether your current solution supports Phase 2 integration, not only Phase 1 invoice generation.
7. Build an implementation calendar that ends before 30 June 2026, with time for testing and corrections.

If you meet the revenue threshold but have not seen a notice, do not assume you are outside scope. ZATCA states that it notifies targeted taxpayers at least six months before the integration date, but businesses should still reconcile VAT records and check official channels. Notices can be missed because of outdated contact details, delegated tax portal access, or a finance team change.

If you are below the threshold in all three years, keep the analysis in your tax file. The rollout is wave-based, and future waves or separate notices may apply. A written scope memo is useful for auditors, investors, and new finance leaders who need to understand why the company did or did not begin integration.

Phase 1 vs Phase 2 in Plain English

Phase 1 was about generating and storing e-invoices through an electronic solution. Phase 2 is about connecting that solution with ZATCA systems and meeting additional technical and business requirements for invoice data, formats, and transmission.

The difference matters because many systems can produce a nice-looking invoice but cannot complete Phase 2 workflows. A PDF invoice by itself is not the same as an integrated electronic invoice. ZATCA's implementation resolution refers to XML format or PDF/A-3 with embedded XML, and the Integration Phase requires approved formats and API connectivity for integration.

Here is the simple comparison:

Treat Phase 2 as a cross-functional project. It is not owned only by the accountant or only by IT. Finance knows VAT treatment and invoice rules. IT knows systems and integration. Sales operations knows customer master data. Store teams know point-of-sale realities. Management controls the budget and vendor decision.

Standard and Simplified Invoices Do Not Follow the Same Workflow

ZATCA's implementation materials distinguish standard tax invoices and simplified tax invoices. In broad terms, standard tax invoices are generally associated with business-to-business transactions, while simplified tax invoices are common in business-to-consumer or retail contexts.

The Integration Phase treats them differently:

This is where implementation often becomes more complex than expected. A restaurant group may have POS systems, delivery platforms, corporate catering invoices, and branch-level returns. A distributor may have ERP invoices, manual credit notes, and warehouse-linked dispatch records. A professional services firm may have milestone invoices, retainers, and foreign clients.

Before selecting or upgrading software, list every place an invoice or note is created. Then classify each document type. A system that handles headquarters invoices but not branch POS invoices may leave a gap.

Technical Readiness Checklist for Wave 24

Wave 24 readiness means your business can generate, validate, transmit, store, and retrieve e-invoices in the required structure. It also means your team can handle errors without stopping sales.

Use this checklist before signing off:

• VAT registration details are correct in ZATCA and in your invoicing system.
• Legal name, address, branch details, and seller information are consistent.
• Customer VAT numbers are captured and validated for B2B customers.
• Product and service tax codes are mapped correctly.
• Invoice sequencing is controlled and cannot be casually reset.
• Credit notes and debit notes are supported, not handled outside the system.
• XML generation or required embedded XML format is supported.
• API connectivity to ZATCA's systems is supported by the vendor or internal team.
• Cryptographic stamping, UUIDs, hashes, and QR code requirements are addressed where applicable.
• Standard and simplified invoice workflows are tested separately.
• Archiving keeps original invoice data and technical response records.
• Staff know what to do if an invoice is rejected or a connection fails.

Do not leave this checklist to the software vendor alone. Vendors can configure systems, but the taxpayer is still responsible for accurate VAT data, transaction classification, invoice content, and operational controls. If your customer master data is weak, even a strong integration can produce errors.

For founders using Saudi Arabia as part of a broader personal or business move, compliance planning should sit beside immigration and ownership planning. Truescho's guide to Saudi Premium Residency products in 2026 is useful background for executives comparing long-term presence options, but it does not replace tax and invoicing advice.

Timeline: Work Backward from 30 June 2026

The deadline is 30 June 2026, but the practical deadline is earlier. Your system should be selected, configured, tested, and staff-trained before the final week.

Here is a conservative working timeline:

This timeline is not a guarantee. A clean cloud accounting setup may move faster. A multi-branch retailer with several POS systems may need longer. A company with customized ERP workflows, missing buyer VAT numbers, or high transaction volume should start earlier.

The most dangerous plan is "we will integrate after Ramadan, Eid, or the busy season" without counting actual testing days. If your team discovers in late June that invoice hashes, customer VAT fields, or API credentials are failing, you may not have enough time for a calm fix.

Common Failure Points

The most common failure is assuming PDF equals e-invoice. A readable PDF may be helpful for humans, but Phase 2 depends on structured data and system integration. If the invoice data cannot be generated, transmitted, validated, and stored as required, the presentation layer is not enough.

The second failure is poor customer data. Standard tax invoices can require buyer information that many companies have not maintained accurately. Missing VAT numbers, outdated legal names, and inconsistent addresses can cause avoidable rejection loops or manual fixes.

The third failure is treating credit notes and debit notes as exceptions outside the system. ZATCA e-invoicing covers electronic notes too. If returns, discounts, corrections, and adjustments are handled manually, your invoice chain may become unreliable.

The fourth failure is ignoring branch and POS realities. Headquarters may be ready while a branch still uses an old cash register, spreadsheet, or offline workaround. For simplified invoices, high-volume retail operations need strong connectivity, local controls, and exception reporting.

The fifth failure is not training staff. A finance manager may understand the project, but the person issuing the invoice at 9:30 p.m. may not know what a rejection means or whom to call. Training should include real scenarios, not only a slide deck.

The sixth failure is weak evidence. Keep screenshots, test logs, vendor confirmations, ZATCA responses, configuration approvals, and staff training records. If there is a later review, a dated evidence file can show that management took the integration project seriously.

What International Founders and Investors Should Watch

International founders often underestimate Saudi e-invoicing because they compare it with simpler invoice PDF practices in other markets. ZATCA Phase 2 is more operational. It can affect revenue collection, customer onboarding, procurement qualification, and audit readiness.

If you own a Saudi entity through a foreign holding company, do not treat this as a local bookkeeping detail. The board or founder should ask for a short readiness report covering scope, systems, vendors, transaction types, testing status, and unresolved risks. That report should be reviewed alongside VAT returns and management accounts.

If your group also has UK entities, compare Saudi invoice controls with your UK banking and tax documentation. The same investors and banks that ask for clean KYC may also ask whether the operating company can invoice legally and maintain tax records. Related Truescho guides on UK business bank accounts for non-residents and UK company tax for a non-resident owner can help founders think across jurisdictions.

If you operate in both the UAE and Saudi Arabia, separate the workstreams. UAE Corporate Tax relief is a tax return election question. ZATCA Wave 24 is a live invoicing systems integration question. Both matter, but they need different evidence, advisors, and internal owners.

Choosing Advisors and Vendors without Overpromising

No consultant or software provider should promise that your business is automatically compliant, that ZATCA will accept every invoice, or that integration will be painless. The right advisor should help you identify scope, risks, data gaps, and implementation responsibilities.

When comparing providers, ask:

• Have you handled Phase 2 integration for businesses with my transaction type?
• Do you support both standard and simplified invoice workflows?
• What happens if ZATCA rejects an invoice or the API is unavailable?
• How do you store original XML, response logs, and audit evidence?
• Which responsibilities remain with our finance team?
• What testing will be completed before production?
• How will branches and POS devices be included?
• What documentation will we receive after go-live?

Truescho consultants can help management teams structure these questions before they speak with Saudi tax advisors, accounting software vendors, or implementation partners. You can start from Truescho consultants if you need a clearer decision pack, but final tax and technical positions should be confirmed with qualified professionals and official ZATCA channels.

FAQ

What is ZATCA e-invoicing Wave 24?

Wave 24 is a group in Saudi Arabia's Phase 2 e-invoicing rollout. ZATCA announced that it covers taxpayers whose VAT-taxable revenue exceeded SAR 375,000 during 2022, 2023, or 2024, with integration to the Fatoora platform required by 30 June 2026 for targeted taxpayers.

Which taxpayers fall under Wave 24 before 30 June 2026?

Taxpayers whose revenue subject to VAT exceeded SAR 375,000 in any of 2022, 2023, or 2024 are within the Wave 24 selection criteria announced by ZATCA. Businesses should also review official ZATCA notices and portal messages before confirming their exact obligation and timeline.

Is the SAR 375,000 threshold tested against one year or all three years?

The Wave 24 announcement refers to taxpayers whose VAT-taxable revenue exceeded SAR 375,000 during 2022, 2023, or 2024. In practical terms, review each year separately. Do not use an average across the three years unless ZATCA guidance for your case says otherwise.

What should I do if I meet the threshold but have not received a notice?

Check the ZATCA portal, registered email, tax representative access, and contact details. Do not assume you are outside scope only because a notice was missed. Prepare a written review of VAT revenue, systems, and communication history, then confirm through official ZATCA channels or your advisor.

How is Phase 2 different from Phase 1?

Phase 1 required taxpayers to generate and store e-invoices through compliant electronic solutions. Phase 2 adds integration with ZATCA systems, specific formats, additional fields, and clearance or reporting workflows. It is a finance, tax, ERP, POS, and data project, not just a new invoice template.

Is issuing PDF invoices enough for ZATCA Phase 2?

No, a normal PDF alone is not enough. ZATCA materials refer to structured electronic invoice formats such as XML or PDF/A-3 with embedded XML, plus integration requirements. Your system must support the required data, controls, transmission, and storage processes for Phase 2.

Do simplified invoices and standard tax invoices follow the same workflow?

No. Standard tax invoices and simplified tax invoices have different Phase 2 workflows. Standard tax invoices are generally cleared through ZATCA before being shared, while simplified tax invoices are reported within the required timeframe. Businesses with both B2B and retail sales should test both paths.

How long should a Saudi SME allow for testing?

A small business should allow several weeks, and more if it has branches, POS devices, customized ERP, weak customer data, or high invoice volume. Testing should include invoice creation, credit notes, debit notes, rejected invoices, API interruptions, archiving, and staff procedures before the deadline.

What records should be checked before confirming Wave 24 readiness?

Review VAT returns, revenue schedules for 2022-2024, ZATCA notices, seller data, customer VAT numbers, invoice templates, tax codes, credit and debit note processes, POS devices, ERP settings, XML output, API logs, training records, and the final vendor or advisor sign-off.

Conclusion

ZATCA wave 24 e-invoicing 2026 is a deadline-driven systems project. The official threshold is SAR 375,000 of VAT-taxable revenue in 2022, 2023, or 2024, and the integration deadline for targeted Wave 24 taxpayers is 30 June 2026.

The right response is not panic and not delay. Confirm scope, check notices, map every invoice source, test standard and simplified workflows, train staff, and keep evidence. For legal, tax, and technical conclusions, rely on ZATCA guidance and qualified Saudi advisors.

If you need help turning the requirement into a board-ready checklist before speaking with implementation providers, Truescho consultants can help structure the conversation. They cannot guarantee integration acceptance or compliance outcomes, but they can help you ask better questions before the deadline.

Sources

• ZATCA - Criteria set for taxpayers in Wave 24 of E-invoicing - Official Wave 24 announcement covering the SAR 375,000 threshold, 2022-2024 test years, and 30 June 2026 integration deadline.
• ZATCA - Roll-out Phases - Official explanation of Phase 1 and Phase 2 e-invoicing rollout.
• ZATCA - E-Invoicing Implementation Resolution PDF - Official implementation resolution covering formats, integration, API requirements, clearance, reporting, and records.
• ZATCA - Detailed E-Invoicing Guideline PDF - Official technical and procedural guidance for Saudi e-invoicing.
• Wafeq - ZATCA Wave 24 Guide - Advisory support on operational planning and common implementation issues.