Phase 2 of Saudi e-invoicing ("Integration") requires a business to connect its systems directly to ZATCA's Fatoora platform and issue invoices as digitally-signed XML with a QR code. It applies in successive waves by revenue. Wave 24 covers businesses whose taxable turnover exceeded SAR 375,000 in 2022, 2023, or 2024, and they must comply between 1 April and 30 June 2026.
Quick fact: Wave 24 — SAR 375,000 threshold — deadline 30 June 2026 (ZATCA Governor Decision 287-99-1447, gazetted 26 September 2025).
The two phases
| Phase 1 (Generation) | Phase 2 (Integration) | |
|---|---|---|
| Start | 4 December 2021 | 1 January 2023 (in waves) |
| Requires | Issue & store invoices electronically | Connect to Fatoora, XML invoices, cryptographic stamp, QR |
| Who | All VAT taxpayers | Successive waves by revenue (6-month notice) |
Who is in Wave 24?
Any business resident in Saudi Arabia whose taxable turnover exceeded SAR 375,000 in 2022, 2023, or 2024. It's the largest wave so far because it dropped the threshold to this level, making integrated e-invoicing nearly universal for small and mid-size businesses. ZATCA notifies targeted taxpayers at least six months ahead.
Phase 2 technical requirements
- XML in UBL 2.1 (or PDF/A-3 with embedded XML). Unstructured invoices (plain PDF, images, word-processor files) do not qualify.
- Cryptographic stamp & digital signature on standard invoices.
- A UUID per invoice, and a QR code.
- Real-time API integration with Fatoora: standard tax invoices (B2B) use the Clearance model (sent before the customer receives them); simplified invoices (B2C) use the Reporting model (sent within 24 hours).
You can verify a QR code's fields with the ZATCA QR reader.
How to comply
- Check whether you're in Wave 24 (SAR 375,000 threshold) via ZATCA's notice or your Fatoora account.
- Choose a compliant e-invoicing solution supporting XML, the cryptographic stamp, and API integration.
- Integrate and test in ZATCA's environment before the deadline.
- Complete compliance before 30 June 2026 (full enforcement, end of the penalty-waiver period).
Where does invoice extraction fit? Phase 2 is about issuing your invoices. Reading incoming supplier invoices (accounts payable) is a separate job you handle with the Invoice Reader.
Sources: ZATCA — Roll-out phases · Wave 24 criteria. Last updated 17 July 2026. Verify your wave and dates on ZATCA before acting.