Saudi Arabia’s move to electronic invoicing is reaching smaller businesses. The Zakat, Tax and Customs Authority (ZATCA) has announced Wave 25 of the “Integration Phase” (Phase 2) of e-invoicing, and it goes much further than earlier waves.
What’s changed
Wave 25 covers taxpayers whose VAT-subject revenue was more than SAR 187,500 in any one year from 2022 to 2025. That’s half the SAR 375,000 threshold used for Wave 24, whose deadline was 30 June 2026.
If you’re in Wave 25, your e-invoicing solution must be integrated with ZATCA’s Fatoora platform by 1 February 2027. ZATCA says it notifies selected taxpayers in advance, but it’s your responsibility to be ready.
What “integration” actually means
Phase 1 was about creating invoices electronically. Phase 2 goes further: each invoice is sent to ZATCA’s systems in a set format, with a QR code and cryptographic stamp, either for clearance before it’s issued (business-to-business) or reported shortly after (business-to-consumer). In practice, that means:
- Your invoicing or accounting software must be ZATCA-compliant and connected to Fatoora.
- Every channel that creates invoices, including your online store, booking system or quote tool, needs to feed that compliant system instead of producing its own PDFs.
- Paper invoices and home-made spreadsheets are no longer enough.
Where websites and online stores get caught out
Many businesses sort out their accounting software and forget the website. Common gaps we see:
- An online shop (WooCommerce, Magento or Shopify) that emails its own non-compliant invoice.
- Online bookings and deposits that never reach the accounting system.
- Quotes and invoices created in Word or Excel, then sent by WhatsApp.
- Customer details (like VAT numbers for B2B sales) not captured at checkout.
A simple readiness checklist
- Check your revenue for 2022–2025 against SAR 187,500 with your accountant.
- Choose a ZATCA-compliant invoicing or ERP solution if you don’t already have one.
- List every place invoices are created: website, POS, sales team, WhatsApp.
- Connect your website so orders and bookings create invoices in the compliant system automatically.
- Test before the deadline, not in the last week of January.
How Web Solutions can help
We don’t replace your accountant, but we make sure your website and online store fit into a compliant process. We connect Magento, WooCommerce and Shopify orders, online bookings and paperless quote forms to your invoicing system, capture the right customer details at checkout, and remove the manual copying that causes errors. And if you’d like quotes, invoices and customer records in one place, our sister company SmartCo CRM can take it further.
This article is general information, not tax advice. Always confirm your obligations with ZATCA or a qualified adviser.
Is your online store ready for Fatoora?
We’ll review how your website creates invoices and what needs connecting before 1 February 2027.