Saudi VAT 2026: E-Invoicing Waves & New Rules

Businesses across the Kingdom face fresh compliance deadlines in 2026 as Saudi authorities continue rolling out updated value-added tax (VAT) rules and new phases of mandatory electronic invoicing. The standard VAT rate remains unchanged at 15% on most taxable supplies and imports.

Amendments to the VAT Implementing Regulations were approved under a board resolution dated 19 November 2024 and published in the Official Gazette on 18 April 2025. Most changes took effect on that date, while certain provisions carry extended effective dates of up to 180 days from publication.

What e-invoicing requires

Phase 1, the Generation Phase, remains mandatory for all VAT-registered taxpayers. It requires compliant systems that cannot alter or delete invoices without a trace, issuance of XML-based e-invoices and e-notes carrying a QR code and mandatory fields, and storage of records inside Saudi Arabia or in a jurisdiction that meets data-hosting rules.

Phase 2, the Integration Phase, is being applied in waves. Selected taxpayers must connect their e-invoicing solution to the "Fatoora" platform, issue invoices in specified XML/UBL formats with additional security elements and hashes, and transmit business-to-business and business-to-government invoices in real time or near-real time. Consumer invoices must at minimum carry a QR code and remain stored and retrievable, with records typically kept for at least six years.

Latest waves and thresholds

Taxpayers are notified at least six months before their integration date through their online tax account. Wave 21 covers businesses with VAT-liable revenues above SAR 1,250,000 in 2022, 2023 or 2024, with integration from 30 November 2025. Wave 23 covers those with revenues above SAR 750,000 across 2022–2024, with an integration window of 1 January to 31 March 2026.

The phased approach means an expanding number of small and medium enterprises now fall within scope. Companies are advised to check their tax account regularly and prepare their systems early to avoid disruption and penalties.

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