Under Wave 25, taxpayers whose VAT-subject revenues exceeded SAR 187,500 in any of 2022, 2023, 2024 or 2025 will be required to integrate their E-Invoicing solutions with ZATCA's Fatoora Platform by 1 February 2027. ZATCA will notify taxpayers falling within the scope of the wave.
Key Change
The VAT-subject revenue threshold has been reduced by 50%, from SAR 375,000 to SAR 187,500, significantly expanding the population of taxpayers subject to the Integration Phase. The assessment period has also been extended to include 2025.
Businesses should review their VAT-subject revenues for the relevant years and assess whether they fall within Wave 25.
What Should Businesses Do?
Affected businesses should:
- Assess their Wave 25 applicability.
- Review their E-Invoicing systems, VAT configuration, and data.
- Prepare for Fatoora integration and testing; and
- Address any technical or compliance gaps ahead of the deadline.
Grant Thornton's View
The lower threshold brings a broader range of businesses within the E-Invoicing Integration Phase. Early preparation will help businesses identify and address system, data and tax compliance gaps and support timely compliance with ZATCA requirements.
Grant Thornton Saudi Arabia can support businesses with Wave 25 applicability assessments, E-Invoicing readiness reviews, configuration and integration support, and post-implementation health checks.
