ZATCA Wave 25 Explained: Does Your Business Need Fatoora Integration by February 2027?

If you run a business in Saudi Arabia, you have likely heard the word Fatoora more often this year than ever before. The latest announcement from the tax authority is ZATCA Wave 25, and it reaches far more businesses than any wave that came before it. A revenue threshold that was once aimed at large corporations now pulls in small trading firms, clinics, workshops, service providers, and online sellers. Many owners are asking the question: does my business really need Fatoora integration by February 2027? The answer depends on your VAT-subject revenue over the past four years, and the deadline is closer than it looks once you count the work involved. This guide explains who is affected, what the new rules require, and how to prepare step by step. It uses plain language, so you can understand the technical side without needing a developer beside you.

What Is ZATCA Wave 25?

E-invoicing in Saudi Arabia runs in two phases. Phase 1, the generation phase, began in December 2021. It required businesses to stop using handwritten or manually edited invoices and to issue electronic ones with a QR code.

Phase 2, the integration phase, goes a step further. It connects your invoicing system directly to ZATCA's Fatoora platform. ZATCA rolls this out in groups called waves, and each wave covers a new set of taxpayers.

ZATCA announced the Wave 25 criteria on July 24, 2026, and affected businesses must integrate with Fatoora no later than February 1, 2027.

Who Falls Under Wave 25?

The rule is based on revenue. Wave 25 covers every taxpayer whose revenue subject to VAT went above SAR 187,500 during 2022, 2023, 2024, or 2025.

Three points are worth noting:

1. The threshold was cut in half. Wave 24 used SAR 375,000, so the new limit of SAR 187,500 is a 50 percent reduction.

2. One year is enough. A business that had a strong year in 2022 and has since shrunk is still in Wave 25.

3. 2025 now counts. This is the first wave where ZATCA includes calendar year 2025 revenue in its test.

Will ZATCA Contact You?

Yes. ZATCA says it will notify every business in the group, and each wave receives at least six months' notice before its integration date.

Even so, do not wait for a message that might land in an unchecked inbox. Review your own numbers now and log in to your ZATCA account to confirm your status.

What Does Fatoora Integration Require?

This is the technical part, and it is where many businesses get stuck. Phase 2 asks you to connect your e-invoicing solution to the Fatoora platform, issue invoices in a set format, and add extra fields.

In everyday terms, that means:

• API onboarding. Your system registers with ZATCA and receives digital certificates that prove each invoice came from you.

• Structured XML invoices. Invoices must follow ZATCA's required XML format. A plain PDF is not enough on its own.

• Cryptographic stamping. Each invoice is digitally signed so that any later change can be detected.

• UUID and hash chaining. Planning for Phase 2 includes API onboarding, cryptographic stamping, and UUID and hash chaining. Each invoice carries a unique ID and links to the previous one, creating a tamper-evident chain.

• Clearance and reporting. Under ZATCA's rules, standard invoices issued to other businesses are sent to Fatoora for approval before you share them. Simplified invoices issued to consumers are reported within 24 hours.

• QR code. The Phase 1 QR code stays, now tied to the stamped invoice.

Many accounting and ERP products already support these steps. If yours does not, you will need an update, a plugin, or a certified solution provider.

Why the Deadline Matters

February 1, 2027 can feel far away, but the work adds up. You need to check your revenue history, confirm that your software can connect, clean your data, test in ZATCA's sandbox, and train your team. If you depend on a vendor, you also depend on their schedule. Providers get busy as deadlines near, and late starters often face delays.

Missing the date can lead to penalties and compliance problems, so treat it as fixed.

How to Prepare, Step by Step

1. Check your VAT-subject revenue. Review each year from 2022 to 2025. If any year exceeded SAR 187,500, you are in scope.

2. Review your invoicing setup. Find out whether your software is already Phase 2 ready.

3. Clean your data. Customer names, VAT numbers, addresses, and item details must be accurate. Errors here commonly cause rejected invoices.

4. Ask your software provider. Request their Fatoora timeline, costs, and support terms.

5. Test before going live. Use the sandbox to practice generating, signing, and submitting invoices.

6. Train your staff. Anyone who issues invoices, credit notes, or debit notes should know the new workflow.

7. Monitor rejections. Fix rejected invoices quickly to keep your records clean.

What If You Are Not in Wave 25?

If your revenue never crossed the threshold, this wave does not apply to you. That doesn't mean you are exempt forever. Businesses outside the first 25 waves should keep watching for future ZATCA announcements about their own timeline. Each wave has moved down the revenue scale, so early preparation is a smart habit.

Final Thoughts

ZATCA Wave 25 is the widest expansion of the integration phase so far. The lower threshold brings in many businesses that assumed e-invoicing was only for large companies. But you still have time. Use it to confirm whether you are in scope, choose a reliable system, and test properly. Start with one simple question: did your VAT-subject revenue pass SAR 187,500 in any year from 2022 to 2025? If yes, begin your Fatoora integration now, so February 1, 2027 arrives as a routine date instead of a last-minute rush. 

If you are not sure about wave 25, you can get a free wave 25 eligibility check from Accure CFO.  

Fatoora integration works best when your bookkeeping and accounting are already in order. At Accure CFO, we set up and manage your bookkeeping and accounting so your business is ready for Fatoora without last-minute problems.

Contact us directly at info@accurecfo.com.