Saudi Arabia's Wave 24 e-invoicing mandate reaches lowest threshold yet, affecting SMEs from 30 June 2026

Saudi Arabia’s tax authority ZATCA announced Wave 24 of its Phase 2 e-invoicing rollout on 26 September 2025. Businesses with VAT-taxable revenue above SAR 375,000 in any of 2022, 2023, or 2024 must integrate with the Fatoora platform by 30 June 2026. This is the lowest threshold yet and affects a broad segment of SMEs.

ZATCA announced Wave 24 on 26 September 2025, expanding Saudi Arabia’s mandatory e-invoicing programme to capture the broadest segment of businesses yet. Any taxpayer with VAT-taxable revenue exceeding SAR 375,000 in any single year from 2022 to 2024 must comply by 30 June 2026. This is the lowest threshold to date.

The threshold applies regardless of current turnover. A business that crossed SAR 375,000 in 2022 but has since shrunk remains in scope. This design casts a wide net across small and medium enterprises.

What Wave 24 requires

Affected taxpayers must integrate directly with the Fatoora platform. The integration goes beyond Phase 1 (which required QR codes and structured invoice generation) and now mandates:

• XML-formatted invoices
• QR codes
• Cryptographic digital signatures
• Universally unique identifiers (UUIDs)
• Previous-invoice hashes
• Real-time clearance via secure API

Non-compliance carries material consequences: financial penalties, rejection of non-compliant invoices, frozen receivables, and exclusion from government procurement.

Phased rollout and notice period

Saudi Arabia has been rolling out e-invoicing in phases since 4 December 2021 (Phase 1) and 1 January 2023 (Phase 2). ZATCA gives six months’ notice before each new wave takes effect. Wave 24 follows this pattern: announced in late September 2025, effective 30 June 2026.

ZATCA frames e-invoicing as both a fraud-prevention tool and a digital transformation milestone aligned with Saudi Vision 2030.

References

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1. www.vatupdate.com