Blog/July 14, 2026·4 min
Saudi e-invoicing phases: the complete timeline from December 2021 to June 2026
The full rollout of e-invoicing in Saudi Arabia — the generation phase in December 2021, the Fatoora integration waves since January 2023, and Wave 24 at the SAR 375,000 threshold with its June 30, 2026 deadline. Every date sourced.
E-invoicing in Saudi Arabia is a mandatory regime run by the Zakat, Tax and Customs Authority (ZATCA) that requires VAT-registered taxpayers to issue invoices from compliant electronic systems instead of paper or handwritten documents. It was rolled out in two main phases, and the second phase has expanded through successive waves until it now covers virtually every VAT-registered business. This guide assembles the complete timeline from official sources.
What are the two phases of Saudi e-invoicing?
ZATCA implemented the reform in two phases: the Generation phase (Phase 1), live since December 4, 2021, which requires all invoices to be issued electronically; and the Integration phase (Phase 2), live since January 1, 2023, which requires invoicing systems to connect directly to ZATCA's Fatoora platform, rolled out in waves defined by revenue.
The essential difference: in Phase 1 it is enough to issue invoices from a compliant electronic system; in Phase 2 that system must talk to ZATCA in near real time — clearance before delivery for B2B tax invoices, reporting within 24 hours for simplified B2C invoices.
When did Phase 1 start and what does it require?
The Generation phase started on December 4, 2021 and applied from day one to all VAT-registered taxpayers, with no size threshold. Its core requirements:
- Invoices must be issued from an electronic invoicing system (accounting software, a POS system, or a cloud solution) — no handwritten invoices and none produced with a plain word processor;
- A QR code is mandatory on simplified tax invoices issued to consumers;
- Invoices must be stored electronically, and prohibited functions — such as deleting or editing an issued invoice — must be disabled.
How do the Phase 2 integration waves work?
Since January 1, 2023, ZATCA has been mandating integration with the Fatoora platform in waves defined by VAT-taxable revenue, notifying each targeted group at least six months before its compliance date. The waves started with the largest companies and moved progressively down to smaller ones.
The documented milestones:
| Wave | Taxable revenue threshold | Compliance date |
|---|---|---|
| Wave 1 | over SAR 3 billion (2021) | January 1, 2023 |
| Wave 2 | SAR 500 million – 3 billion (2021) | July 1, 2023 |
| Wave 3 | SAR 250 – 500 million (2021 or 2022) | October 1, 2023 |
| Wave 13 | SAR 7 – 10 million (2022 or 2023) | January 1, 2025 |
| Wave 23 | over SAR 750,000 (2022–2024) | announced June 27, 2025 |
| Wave 24 | over SAR 375,000 (2022–2024) | no later than June 30, 2026 |
Between these milestones, ZATCA announced many intermediate waves at a near-monthly pace, each with its own deadline. The constant rule: only ZATCA defines waves and deadlines, through its official announcements, and it notifies the targeted taxpayers directly.
What is Wave 24 and why is it a turning point?
On September 26, 2025, ZATCA announced the criteria for Wave 24: all taxpayers whose VAT-taxable revenue exceeded SAR 375,000 in 2022, 2023 or 2024, with integration to be completed no later than June 30, 2026.
That threshold matters because it equals the mandatory VAT registration threshold itself (SAR 375,000). In other words: with Wave 24 complete, the integration mandate effectively covers every VAT-registered business — from large corporations down to small shops and young companies.
How do you know which wave applies to you — and what should you do now?
Check your VAT-taxable revenue for 2022, 2023 and 2024; if any of those years exceeded SAR 375,000, you fall under a wave — and most likely one whose deadline has passed or is imminent (June 30, 2026 for Wave 24). Practical steps:
- Check for ZATCA's notification — the authority formally notifies targeted taxpayers at least six months before their wave's deadline.
- Confirm your system's compliance — it must generate UBL-based XML invoices with hashing, cryptographic stamping and an invoice counter.
- Test on the Fatoora simulation environment before going live.
- Do not wait — onboarding involves registering solution units and obtaining cryptographic stamp certificates, and that takes testing time.
Modern cloud invoicing systems — Efatora among them — handle the technical side of integration (XML generation, signing, the Fatoora connection) so business owners can stay focused on their business.
The bottom line
From December 4, 2021 to June 30, 2026, Saudi Arabia completed one of the world's broadest e-invoicing rollouts in under five years. The question today is no longer "will this apply to me?" but "is my system compliant and integrated?".