Wave 23: Phase 2 E-Invoicing Integration Requirements in Saudi Arabia (Turnover > SAR 750,000)

Who Is in Wave 23 (Scope & Turnover Test)

Wave 23 captures VAT-registered taxpayers whose VAT-liable revenues exceeded SAR 750,000 in any of the years 2022, 2023, or 2024. If you meet this criterion, you fall within the 23rd group of Phase 2 integration. :contentReference[oaicite:1]{index=1}

Compliance Window & Notifications

• Integration go-live period: 1 January 2026 → 31 March 2026 (both dates inclusive). :contentReference[oaicite:2]{index=2}
• ZATCA notifications: Affected taxpayers are formally notified by ZATCA during the applicable period to complete onboarding and integration with the FATOORA platform. :contentReference[oaicite:3]{index=3}

Treat this three-month window as a hard deadline: build, test, and promote to production with sufficient contingency.

What Phase 2 (Integration) Requires

Phase 2 mandates linking your ERP/POS e-invoicing generation solution (EGS) with ZATCA’s FATOORA platform, submitting standard tax invoices for clearance and simplified tax invoices for reporting through APIs, under published data, XML and security standards. :contentReference[oaicite:4]{index=4}

• Standard (B2B/B2G) invoices: must be cleared by ZATCA before sharing with the buyer. :contentReference[oaicite:5]{index=5}
• Simplified (B2C) invoices: must be reported to ZATCA (near real-time), following Phase 2 reporting rules. :contentReference[oaicite:6]{index=6}
• Supporting docs: credit/debit notes must meet e-note standards and reference the original invoice. :contentReference[oaicite:7]{index=7}

Technical Essentials: Clearance, Reporting, CSID, QR, UUID

Step-by-Step Plan to Go Live (Wave 23)

1. Confirm scope: Validate your 2022/2023/2024 VAT-liable revenue > SAR 750k; check for ZATCA notification. :contentReference[oaicite:15]{index=15}
2. Gap assessment: Map current invoicing → Phase 2 data fields, sequences, notes, B2B vs B2C routes.
3. Choose approach: Upgrade ERP/POS with a certified EGS or integrate via middleware that supports clearance/reporting APIs.
4. Data cleansing: VAT IDs, addresses, item tax codes, unit of measure, currency/FX handling, references for notes.
5. Build & configure: Implement XML structures, QR/UUID, cryptographic stamping, error handling & retry logic. :contentReference[oaicite:16]{index=16}
6. Onboard CSIDs: Use FATOORA portal to obtain CSIDs, bind EGS devices, and register sequences. :contentReference[oaicite:17]{index=17}
7. Test in Sandbox: Clearance for standard invoices; reporting for simplified; simulate volume and outages. :contentReference[oaicite:18]{index=18}
8. Cutover plan: Freeze master data, align sequence numbers, and schedule go-live within 1 Jan–31 Mar 2026. :contentReference[oaicite:19]{index=19}
9. Post-go-live controls: Monitor rejections/warnings, reconcile clearances, and maintain audit logs.

Controls, Logs & Reconciliation

• Daily exception report: rejected/partially accepted documents; reasons (schema, business rules, referential checks). :contentReference[oaicite:20]{index=20}
• Sequence continuity: no gaps/overlaps across branches and channels; keep evidence of canceled/voided notes.
• Clearance vs. AR ledger: reconcile ZATCA acknowledgments to GL/AR and VAT return boxes.
• Security & retention: protect private keys, track CSID usage, and maintain robust e-archive procedures per standards. :contentReference[oaicite:21]{index=21}

Common Pitfalls (and How to Avoid Them)

• Missing the window: delaying onboarding until March risks congestion and failed cutovers—start earlier.
• Wrong invoice route: sending B2B invoices as simplified (should be cleared, not only reported). :contentReference[oaicite:22]{index=22}
• Invalid QR/UUID/hash chain: non-compliant security features lead to rejections and penalties. :contentReference[oaicite:23]{index=23}
• Inconsistent master data: buyer VAT numbers, addresses, or item codes not synced across systems.
• No rollback plan: absence of controlled fallback causes duplicate/sequencing issues during outages.

Wave 23 Readiness Checklist

• Revenue test met: > SAR 750k in 2022/2023/2024 (in scope). :contentReference[oaicite:24]{index=24}
• EGS upgraded and aligned to XML/Data Dictionary; QR, UUID, hash chain built. :contentReference[oaicite:25]{index=25}
• CSIDs onboarded; sequences assigned by branch/channel. :contentReference[oaicite:26]{index=26}
• Clearance (B2B/B2G) & reporting (B2C) flows tested in Sandbox. :contentReference[oaicite:27]{index=27}
• Go-live window scheduled (1 Jan–31 Mar 2026); support team on call. :contentReference[oaicite:28]{index=28}
• Exception dashboards and reconciliation routines active.

FAQ

How will we know we’re in Wave 23?
ZATCA issues direct notifications to in-scope taxpayers based on the published turnover test. :contentReference[oaicite:29]{index=29}

Can we integrate earlier than January 2026?
You can complete readiness/testing earlier, but production go-live must occur within the official window for Wave 23. :contentReference[oaicite:30]{index=30}

What documents are cleared vs. reported?
Standard tax invoices are cleared; simplified tax invoices are reported. Credit/debit notes follow their respective e-note standards. :contentReference[oaicite:31]{index=31}

Where are the official technical specs?
ZATCA’s Detailed Technical Guidelines, XML/Data Dictionary, and security standards are on the E-Invoicing portal and developer pages. :contentReference[oaicite:32]{index=32}

SEO Takeaways for Corporate Readers

• Wave 23 e-invoicing Saudi Arabia: turnover threshold SAR 750k; compliance window 1 Jan–31 Mar 2026. :contentReference[oaicite:33]{index=33}
• FATOORA Phase 2 integration: clearance for B2B/B2G; reporting for B2C; CSID, QR, UUID and hash chain required. :contentReference[oaicite:34]{index=34}
• ZATCA notification & onboarding: prepare via Compliance Toolbox & Sandbox; finalize cutover in window. :contentReference[oaicite:35]{index=35}