ZATCA Phase 2 wave 25: what to do if your sales passed SAR 187,500
If your taxable sales passed SAR 187,500 in any year from 2022 to 2025, ZATCA e-invoicing Phase 2 reaches you next, from 1 February 2027. This guide is for owners without an IT team, which is most of the people this wave affects.
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Who is in wave 25
You are in if your taxable turnover went above SAR 187,500 in calendar year 2022, 2023, 2024 or 2025. One year is enough, so a busy 2023 followed by a quiet 2025 still puts you in. It is also the first wave to count 2025 sales, so a business that only recently grew past the line can be included.
The wave before it, wave 24, covered turnover above SAR 375,000 and had a deadline of 30 June 2026. If you belonged to that group and have not connected yet, you are already late, so treat this as this week's job and speak to your adviser.
What changes when Phase 2 reaches you
Phase 1, which began in December 2021, asked you to issue invoices electronically. Phase 2 goes further and connects your billing system to Fatoora, ZATCA's e-invoicing platform. From then on, each invoice has a job to do after you create it:
- Invoices to other businesses go to ZATCA for clearance before your customer receives them.
- Invoices to the public go straight to the customer and are reported to ZATCA within 24 hours.
With the right software, your team barely notices. They bill as usual and the system does the sending. A spreadsheet or a Word template has no way to connect to Fatoora, so if that is how you invoice today, this is the part of your routine that has to change. Our guide to standard and simplified tax invoices explains the two paths in more detail.
How to prepare before 1 February 2027
- Check your numbers. Pull your taxable turnover for each year from 2022 to 2025. Your VAT returns are the easiest place to find it.
- Watch for ZATCA's notification. ZATCA says it will notify the taxpayers in this wave, so make sure the contact details on your ZATCA account are current and someone actually reads that inbox.
- Ask your software provider one direct question: does this product connect to Fatoora for Phase 2 today? If the answer is "soon" or "with an upgrade", ask for a date.
- Leave yourself time. Connecting is rarely the hard part. Finding out in the last week that a branch or a till was missed is. Run real invoices through the system weeks ahead.
- Show your staff how to correct a mistake. An issued invoice is changed with a credit or debit note, and deleting it is a violation.
What happens if you miss the deadline
According to Deloitte's summary of ZATCA's published violations, failing to issue or archive e-invoices carries SAR 5,000 to 50,000, and deleting or amending an invoice after issue (other than through a credit or debit note) carries SAR 10,000 to 50,000. The amount depends on the violation and on how often it repeats. Some failures, such as not telling ZATCA about a fault that stops you issuing invoices, start with a warning.
Where Hisaabii fits
We build e-invoicing software, so of course we would like you to try ours. Hisaabii issues compliant tax invoices and connects to ZATCA for both phases, and the first month is free, then SAR 99 a month on Starter. Starting now means you can test it on real invoices with months to spare. If your current provider already covers Phase 2, stay where you are and just run the checks above.
This guide is general information, written for business owners. For a decision about your own company, check ZATCA's published rules or ask your tax adviser.
