Every ZATCA Phase 2 Wave and Threshold in One Table: Waves 1 to 25, From SAR 3 Billion Down to SAR 187,500

ZATCA, the Saudi tax authority, has rolled out Phase 2 of e-invoicing (Fatoora integration) in waves, starting with the largest taxpayers on 1 January 2023. The thresholds fell from SAR 3 billion in wave 1 to SAR 375,000 in wave 24, and wave 25, announced on 24 July 2026, lowers it to SAR 187,500 with integration due by 1 February 2027. The table below lists every wave, as of November 2026.

What are the ZATCA Phase 2 waves?

Phase 1 (generation) began on 4 December 2021 and covers all taxpayers except non-resident taxpayers. Phase 2 (integration) is enforceable from 1 January 2023, and ZATCA brings in targeted groups wave by wave. ZATCA says it notifies taxpayers of their wave at least six months in advance.

Each wave picks taxpayers by VAT-subject revenue in set calendar years. A taxpayer is in the wave if it passed the threshold in any of the named years, so a business that has since shrunk can still be caught.

Which wave is my business in? The full table, waves 1 to 25

Thresholds are annual VAT-subject revenue "more than" the figure. Dates for waves 1 to 24 are the mandate dates in a Qoyod compilation. Wave 25 is from the EY alert on ZATCA's announcement.

Two independent sources agree on waves 23 and 24. A different source gives wave 7 as SAR 50 million, which matches the table. We did not cross-check every other row against a ZATCA announcement. Treat waves 8 to 22 as a guide, not as proof.

What changed in wave 24 and wave 25?

Wave 24 set the threshold at SAR 375,000, which equals the mandatory VAT registration threshold. In practice that brought nearly every VAT-registered business into scope. Wave 25 goes lower. It covers taxpayers with taxable turnover above SAR 187,500 in any of 2022, 2023, 2024 or 2025, and it is the first wave to count 2025 revenue.

For the full detail on that wave, including what to do before 1 February 2027, see ZATCA wave 25.

Does a UAE seller appear in any wave?

ZATCA's overview says Phase 1 applies to all taxpayers except non-resident taxpayers. The page says nothing about non-residents in Phase 2, and ZATCA's wave announcements as relayed by EY and Grant Thornton describe the wave 25 criteria for resident taxpayers. We did not find ZATCA text that puts a UAE company without a Saudi presence in a wave. Read does a UAE company selling into Saudi need Fatoora Phase 2 for the reasoning and the questions to put to ZATCA.

What does a wave actually require?

Phase 2 means integrating your e-invoicing solution with ZATCA's Fatoora platform, issuing invoices in the specified format and including additional invoice fields. ZATCA separates the tax invoice, usually issued business to business, from the simplified tax invoice, usually issued business to consumer.

You normally do this through accounting or ERP software that is built for Fatoora, not by hand. ZATCA keeps a directory of solution providers that passed its qualification, and says taxpayers may use any compliant provider, listed or not. Pricing and onboarding times differ by vendor and are not published by ZATCA; ask each vendor in writing.

Why does the wave date matter for a marketplace seller?

If you sell to Saudi consumers through Amazon.sa or noon, who issues which invoice depends on the marketplace model and your contract, and we have not confirmed it from a marketplace page. Your own duty depends on whether you are a resident Saudi taxpayer. We did not find a ZATCA statement on marketplace sellers specifically, so this is a question for ZATCA or your Saudi adviser. See selling in Saudi Arabia from the UAE and Saudi VAT for UAE companies for the registration side.

How do I know when my own deadline is?

1. Add up your VAT-subject revenue for each calendar year named in the latest wave, not just the current year.
2. Compare each year with the threshold. Passing it in any one year is enough.
3. Watch for the ZATCA notification. The Grant Thornton note says you do not need to wait for it to check your own eligibility.
4. If you already integrated in an earlier wave, no new action is needed for later waves; later waves only add smaller taxpayers.

Worked example, illustrative: a Riyadh trader had SAR 600,000 of VAT-subject revenue in 2023 and SAR 150,000 in 2025. It passed SAR 375,000 in 2023, so it fell into wave 24 even though 2025 was lower. The figures are made up; the any-year rule is real.

What happens to businesses outside all 25 waves?

EY says taxpayers outside the first 25 waves should watch for future ZATCA announcements. Businesses below SAR 187,500 may still have Phase 1 duties if they are VAT-registered residents. Whether ZATCA will announce a wave 26 is not confirmed.

FAQ

How many ZATCA Phase 2 waves are there? There are 25 as of November 2026. Wave 25 was announced on 24 July 2026 with integration due by 1 February 2027. Anyone outside those waves should watch for future ZATCA announcements, and no wave 26 has been confirmed.

What is the lowest threshold so far? SAR 187,500 of VAT-subject revenue in any of 2022 to 2025, set by wave 25. The previous lowest was SAR 375,000 in wave 24.

Will ZATCA tell me which wave I am in? Yes. ZATCA says it notifies taxpayers at least six months in advance. Do not rely on the notice alone; check your own revenue against each wave.

What is the difference between Phase 1 and Phase 2? Phase 1 means generating and storing electronic invoices through a compliant solution, in force since 4 December 2021. Phase 2 means connecting that solution to ZATCA's systems, rolled out by wave from 1 January 2023.

Is a scanned or PDF invoice an e-invoice? No. ZATCA describes an electronic invoice as a tax invoice created in structured electronic form, and says a copied or scanned paper invoice does not count.

Are the penalties for missing a wave deadline known? EY says taxpayers should comply to avoid possible penalties. A penalty schedule was not confirmed from a ZATCA page for this guide, so check ZATCA before relying on any figure quoted by software vendors.

What to do next

Check your VAT-subject revenue for 2022 to 2025 against the table, then confirm your wave with ZATCA. If you sell on Amazon.ae or noon from the UAE and also supply Saudi buyers, Blooprint can handle the marketplace side through UAE marketplace management while your accountant handles Fatoora. For the UAE side of the same question, see UAE e-invoicing for online sellers.