ZATCA Phase 2 integration, live before your wave date.

Is your business in Wave 25?

On 24 July 2026 ZATCA set the criteria for Wave 25 of the Integration phase (مرحلة الربط والتكامل). It covers VAT-registered taxpayers whose revenue subject to VAT exceeded SAR 187,500 in any of 2022, 2023, 2024 or 2025. ZATCA Decision 1448-99-238, published in the Umm Al-Qura gazette, applies the obligation from 1 February 2027.

The test is any single year, not your current turnover. A business that crossed SAR 187,500 once in 2022 and has shrunk since can still be in scope. This is also the first wave to count 2025 revenue.

ZATCA notifies each targeted taxpayer directly, at least six months before its integration date. Treat the table below as a guide, and confirm your own wave and date in your ZATCA notification or with ZATCA itself.

What “integration” actually means technically.

Phase 1 (since 4 December 2021) required electronic invoices with a QR code. Phase 2 adds a technical link to ZATCA, a strict data format and security features that most older systems were never built for. These are the requirements in ZATCA's own guidelines:

• Onboarding: you log in to the Fatoora portal, request a one-time password (OTP) and enter it in your invoicing solution, which then obtains a Cryptographic Stamp Identifier (CSID). Every device issuing invoices under your VAT number must be onboarded.
• XML in ZATCA's format: invoices and credit/debit notes are generated as XML (or PDF/A-3 with the XML embedded), following ZATCA's XML Implementation Standard, which is based on UBL 2.1.
• Cryptographic stamp: your solution stamps each simplified invoice using its CSID. For standard tax invoices, ZATCA adds its own stamp when it clears the invoice.
• Phase 2 QR code: simplified invoices carry a QR code with nine tags in TLV/base64 format. For B2B tax invoices, ZATCA returns the QR code string at clearance.
• Invoice chaining: each invoice carries a unique UUID, a counter and the hash of the previous invoice, linking every invoice to the one before it. ZATCA also prohibits resetting the invoice counter.
• Arabic invoice data: under Article 53 of the VAT Implementing Regulations, the invoice content must be in Arabic. Other languages may appear alongside it.

B2B and B2C invoices follow different rules.

Most integration problems start here. Your system has to know, for every sale, which document type it is issuing and which API flow that document must take.

Whatever runs your invoicing, there is a route to Fatoora.

• ERPNext: Phase 2 is added through Frappe apps, including the free, open-source KSA Compliance app (LavaLoon) and a paid ZATCA app (ERPGulf), both listed on the Frappe Cloud Marketplace. We configure, test and onboard it, and fix print formats, tax templates and customer data so invoices pass validation. If you're choosing a new ERP, read ERPNext vs Odoo for Saudi businesses.
• Odoo: Odoo's Saudi Arabia e-invoicing module (l10n_sa_edi) handles onboarding per sales journal, from the simulation portal through to production. We set up company and partner data correctly and resolve rejections, especially on customised databases.
• Other ERPs and accounting software: if your vendor already offers a Phase 2 connector, we help you configure and test it. If it doesn't, we build a connection between your system and Fatoora.
• Custom or legacy systems: we add a compliance layer that turns your invoices into ZATCA XML, signs them, sends them for clearance or reporting, stores the response and handles retries, without replacing the system your team knows.
• Online stores: if you sell on Salla, Zid, Shopify or WooCommerce, the hard question is which system issues the tax invoice. We cover that in e-commerce to ERP and ZATCA integration.

Ten things to check before your integration date.

• You have your ZATCA notification, and you know your wave and integration date.
• You have access to the Fatoora portal through your ZATCA (ERAD) credentials, and you know who in the business will request the OTPs.
• You know every system and device that issues invoices: ERP, POS terminals, online store, branch software, manual processes.
• Your system can produce ZATCA XML, sign it, generate the QR code and call the Fatoora APIs, or your vendor has confirmed in writing that it will.
• Your seller details are complete, including the full national address with building number.
• B2B customer records hold the VAT number and address details that standard tax invoices need.
• Credit notes and debit notes reference the original invoice, and they run through the same clearance or reporting flow.
• Invoice data and print formats show the required Arabic content.
• Someone owns monitoring: rejected invoices, warnings and failed submissions are reviewed daily, not at month end.
• You have tested end to end in ZATCA's simulation environment before switching to production.

A fixed path from assessment to clean submissions.

The readiness check maps every point in your business that issues an invoice and every gap between what it produces today and what Phase 2 requires. You get a written scope and timeline before any build work starts.

Testing covers standard and simplified invoices, credit and debit notes, zero-rated and exempt lines, and advance payments where you use them. After go-live we watch the first submissions with your finance team, so problems are fixed while they are still small. This is part of our wider ERP and ZATCA solutions service.

1. 01

   Readiness check of systems, devices, data and deadline

2. 02

   Choose the route: configure, connect or build

3. 03

   Clean master data: addresses, VAT numbers, tax codes

4. 04

   Test every invoice type in the simulation environment

5. 05

   Onboard devices to production through the Fatoora portal

6. 06

   Monitor submissions and hand over a runbook