Saudi Arabia: E-invoicing mandatory for taxpayers with revenue above SAR 187,500
ZATCA announced the 25th wave of phase two e-invoicing integration, requiring affected taxpayers to connect with the Fatoora platform by February 1, 2027.
The Saudi tax authority (Zakat, Tax and Customs Authority (ZATCA)) on July 24, 2026, published the criteria for selecting targeted taxpayers in the 25th wave of the integration phase of e-invoicing. The update confirms that all taxpayers with revenues subject to VAT exceeding SAR 187,500 during 2022, 2023, 2024, or 2025 are included in this wave.
Background
Saudi Arabia introduced the e-invoicing mandate in two phases. Phase one (generation phase) began on December 4, 2021, requiring taxpayers to discontinue handwritten or text-edited invoices and adopt technical solutions for e-invoicing. Taxpayers must generate and store e-invoices with required fields, including QR codes, in accordance with the e-invoicing regulation.
Overview of amendments
ZATCA clarified that the integration phase (phase two) imposes additional requirements. Taxpayers must integrate their e-invoicing solutions with ZATCA’s platform (Fatoora), issue e-invoices in a specified format, and include additional fields. ZATCA will notify all targeted taxpayers in the 25th wave, who must complete integration by February 1, 2027. The integration phase is implemented in waves, with ZATCA informing each wave at least six months before its integration deadline.
Next steps
Taxpayers in scope will receive notifications from ZATCA regarding integration requirements and deadlines. Taxpayers should assess their technical readiness, initiate integration with the Fatoora platform, and ensure compliance with the updated e-invoicing requirements.
For further information, contact a KPMG tax professional:
Ankur Agarwal | ankuragarwal7@kpmg.com
Philippe Stephanny | philippestephanny@kpmg.com
Ramon Frias | ramonfrias@kpmg.com