Saudi Arabia halves the e-invoicing integration threshold to SAR 187,500 for Wave 25

What changed in detail

ZATCA published the selection criteria for Wave 25 of the Fatoora Phase 2 (Integration) e-invoicing mandate on 24 July 2026. Taxpayers whose VAT-taxable revenues exceeded SAR 187,500 in any of 2022, 2023, 2024 or 2025 are in scope and must integrate their e-invoicing solutions with the Fatoora platform by 1 February 2027.

The Wave 24 criterion was SAR 375,000, so the threshold has halved. The test is a look-back across four separate years rather than a current-year measure: a business that exceeded SAR 187,500 in 2022 alone is in scope even if its revenue is lower today.

ZATCA states that Phase Two imposes requirements beyond the Generation Phase — integrating the taxpayer’s e-invoicing solution with the Fatoora platform, issuing e-invoices in a specified format, and including additional fields in the invoice. It also states that it notifies each wave’s targeted taxpayers at least six months before their integration date.

What it means

This is the wave that reaches genuinely small businesses. At roughly USD 50,000 of annual taxable revenue, the criterion now catches sole traders and micro-enterprises that have never had to build an API integration, do cryptographic stamping, or maintain UUID/hash chaining.

The four-year look-back is the part most likely to be misread. Scoping off current turnover will under-count: the question is whether any of four historical years crossed the line. Check 2022 through 2025 separately before concluding you are out of scope, and treat ZATCA’s six-month notification as confirmation rather than as the trigger to start work.