Selected waves and their thresholds
| Wave | VAT-subject revenue above | Integration date or deadline |
|---|---|---|
| 1 | SAR 3 billion | From 1 January 2023 |
| 2 | SAR 500 million | From 1 July 2023 |
| 3 | SAR 250 million | From 1 October 2023 |
| 4 | SAR 150 million | From 1 November 2023 |
| 5 | SAR 100 million | From 1 December 2023 |
| 16 | SAR 3 million | By 30 June 2025 |
| 20 | SAR 1.5 million | By 31 October 2025 |
| 22 | SAR 1 million | By 31 December 2025 |
| 23 | SAR 750,000 | By 31 March 2026 |
| 24 | SAR 375,000 | By 30 June 2026 |
| 25 | SAR 187,500 (as reported) | By 1 February 2027 |
Waves 6 to 15 and others in between stepped the threshold down gradually. Wave 25 was reported in July 2026 by several tax advisers with a test of revenue above SAR 187,500 in any year from 2022 to 2025; ZATCA’s notice to you is what counts. The authoritative list is on the ZATCA e-invoicing site.
How to read the test
- The test is revenue subject to VAT, not profit and not VAT collected. Standard-rated and zero-rated supplies count; exempt and out-of-scope supplies generally do not.
- It is measured over the reference years named in the wave. Crossing the threshold in any one of those years brings you in.
- Once you are in a wave, falling revenue later does not take you out.
- ZATCA notifies taxpayers directly, at least six months before the integration date. If you think you qualify and have not been notified, check your Fatoora portal account and ZATCA’s announcements.
Example: a trading company had SAR 290,000 of VAT-subject sales in 2023 and SAR 410,000 in 2024. It crossed SAR 375,000 in 2024, so it falls in Wave 24, not Wave 25.
A six-month readiness plan
| When | Do this |
|---|---|
| Month 1 | Confirm the wave and date in the ZATCA notice. List every place an invoice is produced: ERP, POS terminals, e-commerce, branch systems, manual credit notes. |
| Month 1–2 | Choose the solution: upgrade your ERP, add an e-invoicing provider, or replace the system. Ask for live Phase 2 references. |
| Month 2–3 | Clean master data: VAT numbers and addresses of B2B customers in the required format, product tax codes, branch and EGS details. |
| Month 3–4 | Onboard on the Fatoora sandbox, run compliance checks for standard and simplified invoices, credit and debit notes. |
| Month 4–5 | Train staff on rejected invoices, downtime and credit notes. Agree with key B2B customers that only cleared invoices are valid. |
| Month 5–6 | Get production CSIDs for every EGS unit, go live before the deadline, and monitor rejections daily for the first weeks. |
Check before go-live
- Every B2B customer has a valid VAT number and a full Saudi national address in the master.
- Every till, branch and server that issues invoices is a separate, onboarded EGS unit.
- Credit notes reference the original invoice and follow the same clearance or reporting flow.
- There is a written process for Fatoora downtime and for invoices ZATCA rejects.
- Certificates have a renewal reminder.
- Invoice XML and the hash chain are archived for the retention period. See Saudi VAT invoice requirements.
Penalties in short
ZATCA’s e-invoicing violations schedule starts with a warning for some violations, such as a missing QR code on a simplified invoice, and fines that rise on repeat; not issuing an e-invoice is fined from the first instance. Adviser summaries report fines of up to SAR 50,000 per violation. Read the current schedule on the ZATCA site rather than relying on a summary.
Where WebSoftOS stands
WebSoftOS does not yet offer certified ZATCA Phase 2 clearance, so we do not recommend relying on it for a wave deadline today. The rest of this checklist is vendor-neutral. For the full background, read ZATCA e-invoicing Phase 1 and Phase 2 explained.
Frequently asked questions
What is the threshold for ZATCA Wave 24?
VAT-subject revenue above SAR 375,000 in 2022, 2023 or 2024, with integration due by 30 June 2026.
What is ZATCA Wave 25?
As reported by tax advisers in July 2026, Wave 25 covers VAT-subject revenue above SAR 187,500 in any year from 2022 to 2025, with integration due by 1 February 2027. Confirm with your ZATCA notification.
How will I know my ZATCA wave?
ZATCA notifies each taxpayer directly at least six months before its integration date. Check your Fatoora portal account and ZATCA announcements.
Does revenue mean profit or VAT?
Neither. The test is revenue from supplies subject to VAT, measured in the reference years for the wave.
Practical, India-specific guides from the team behind WebSoftOS cloud ERP, by Ridhi Technologies, Zirakpur, Punjab.