Saudi VAT E-Invoicing: Key 2026 Waves & Deadlines
Businesses across Saudi Arabia are preparing for new integration deadlines under the Kingdom's electronic invoicing programme, as the standard value-added tax (VAT) rate holds steady at 15% with no change announced for 2026. VAT and e-invoicing are overseen by the Zakat, Tax and Customs Authority (ZATCA) through its online portal and the Fatoora platform.
E-invoicing applies in two phases. Phase 1 (Generation) requires taxpayers to issue structured electronic invoices and credit or debit notes and to store them electronically. Phase 2 (Integration) requires businesses to link their invoicing systems directly with Fatoora for real-time transmission, clearance, and cryptographic stamping of each invoice.
Under Phase 2, a compliant invoice must be produced in XML (UBL 2.1) format and include a QR code, a UUID, a sequential invoice number, and other mandated fields. It must also carry a digital signature from an approved solution and be sent through secure API integration to Fatoora for clearance before it reaches the customer.
Waves and deadlines
Phase 2 is rolled out in waves based on annual VAT-taxable revenue, and ZATCA notifies each targeted group at least six months before its integration deadline. Wave 17 covered businesses with taxable revenue above SAR 2.5 million, with a July 2025 deadline. Wave 19 taxpayers were required to integrate no later than 30 September 2025.
Looking ahead, Wave 23 targets businesses with taxable revenue above SAR 750,000 (for 2022–2024), with an integration window from 1 January to 31 March 2026. Wave 24 covers those above SAR 375,000, with integration between 1 April and 30 June 2026 and full completion required by 30 June 2026. Wave 25, for businesses above SAR 187,500, has been named as the next group, with at least six months' prior notice to come.
The phased approach matters for residents and business owners alike, as compliance affects invoicing at shops, service providers, and suppliers. Companies expecting to fall within upcoming waves are advised to review their systems early and watch for official ZATCA notifications.
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