•By Hassan Mohtashim, Co-founder & CTO, AutoBizzs Systems
ZATCA Phase 2 E-Invoicing: What Saudi SMEs Need
Saudi ArabiaZATCAE-InvoicingFinanceGulf
The short answer: ZATCA's Phase 2 requires your e-invoicing to connect directly to its FATOORA platform, and it is being extended to smaller Saudi businesses in waves. The hard part is rarely the integration itself — it is getting your customer, product and VAT data consistent first. ZATCA notifies each business at least six months before its deadline, so confirm your wave with ZATCA or your tax adviser.
Phase 1 was about generating electronic invoices. Phase 2 (integration) goes further: your invoicing system has to connect directly to ZATCA's FATOORA platform, so invoices are cleared or reported through it rather than just produced locally.
Phase 2 is rolling out wave by wave, reaching ever-smaller businesses. ZATCA announced in July 2026 that Wave 25 covers taxpayers whose VAT-able revenue exceeded SAR 187,500 in any year from 2022 to 2025, with integration due by 1 February 2027.
That threshold is low enough to include many small businesses for the first time. ZATCA notifies each selected business at least six months before its deadline, so check your own wave with ZATCA or your tax adviser rather than assuming.
If you have been invoicing from spreadsheets or a basic tool, the integration is not usually the hard part. The work is getting your customer, product and VAT data consistent so the integrated solution has something clean to send.
That data clean-up and the automation around it is exactly what we do. A finance and accounting system that holds this data in one consistent place turns go-live into a connection step instead of a last-minute scramble.
We get your data and the workflow around invoicing ready, and we automate the manual steps. We do not give tax advice or replace an accredited solution — confirm your wave, deadline and the exact integration path with ZATCA or your tax adviser.
See how we work with businesses in Saudi Arabia.
Phase 2 reaches businesses in waves, by VAT-able revenue. Wave 25 (announced July 2026) covers revenue over SAR 187,500 in any year from 2022 to 2025, due by 1 February 2027. Later waves reach smaller businesses.
ZATCA notifies each selected business at least six months before its integration deadline.
Get your customer, product and VAT data consistent and in one place. That is the part that makes integration smooth, and the part we can automate and tidy.
If your invoicing still runs on spreadsheets, getting the data consistent now is the real preparation for Phase 2. Tell us about your business and we will map what to clean up before your wave.
What is ZATCA Phase 2?
Phase 1 was about generating electronic invoices. Phase 2 (integration) goes further: your invoicing system has to connect directly to ZATCA's FATOORA platform, so invoices are cleared or reported through it rather than just produced locally.
Who is in scope now?
Phase 2 is rolling out wave by wave, reaching ever-smaller businesses. ZATCA announced in July 2026 that Wave 25 covers taxpayers whose VAT-able revenue exceeded SAR 187,500 in any year from 2022 to 2025, with integration due by 1 February 2027.
That threshold is low enough to include many small businesses for the first time. ZATCA notifies each selected business at least six months before its deadline, so check your own wave with ZATCA or your tax adviser rather than assuming.
The real work: clean data before go-live
If you have been invoicing from spreadsheets or a basic tool, the integration is not usually the hard part. The work is getting your customer, product and VAT data consistent so the integrated solution has something clean to send.
That data clean-up and the automation around it is exactly what we do. A finance and accounting system that holds this data in one consistent place turns go-live into a connection step instead of a last-minute scramble.
What we do, and what we don't
We get your data and the workflow around invoicing ready, and we automate the manual steps. We do not give tax advice or replace an accredited solution — confirm your wave, deadline and the exact integration path with ZATCA or your tax adviser.
See how we work with businesses in Saudi Arabia.
FAQ
Who has to integrate with FATOORA?
Phase 2 reaches businesses in waves, by VAT-able revenue. Wave 25 (announced July 2026) covers revenue over SAR 187,500 in any year from 2022 to 2025, due by 1 February 2027. Later waves reach smaller businesses.
How much notice does ZATCA give?
ZATCA notifies each selected business at least six months before its integration deadline.
What should we do before our wave?
Get your customer, product and VAT data consistent and in one place. That is the part that makes integration smooth, and the part we can automate and tidy.
Where to start
If your invoicing still runs on spreadsheets, getting the data consistent now is the real preparation for Phase 2. Tell us about your business and we will map what to clean up before your wave.