ZATCA Wave 24: Saudi Business Compliance Guide for June 2026

ZATCA Wave 24 Deadline: 39 Days Left for Saudi SMEs to Integrate or Face Fines Up to SAR 50,000

Saudi Arabia's Zakat, Tax and Customs Authority (ZATCA) has officially confirmed that 30 June 2026 is the absolute deadline for Wave 24 businesses to integrate their invoicing systems with the Fatoora platform. With fewer than 40 days remaining, thousands of Saudi small and medium enterprises face an urgent compliance challenge — and the cost of missing this deadline starts at SAR 5,000 and can reach SAR 50,000 per violation.

If your business is VAT-registered and your taxable revenues exceeded SAR 375,000 in 2022, 2023, or 2024, you fall under Wave 24. This guide explains exactly what you need to do, what happens if you don't act, and how you can get fully compliant today. Start your ZATCA compliance with Watily now.

Does Wave 24 Apply to Your Business?

ZATCA's Wave 24 targets a broad new segment of Saudi businesses — those with VAT-subject annual revenues exceeding SAR 375,000 during 2022, 2023, or 2024. This is the lowest revenue threshold of any wave to date, meaning a significant number of SMEs that have not yet entered Phase 2 of e-invoicing are now required to comply for the first time.

Key eligibility criteria:

• VAT-registered businesses with taxable revenues above SAR 375,000 in any of 2022, 2023, or 2024.
• Businesses already included in Wave 23 (revenues above SAR 750,000) had a deadline of 31 March 2026.
• Wave 24 specifically targets the SAR 375,000–750,000 annual revenue bracket.
• ZATCA notifies affected businesses directly between April and June 2026 — but receiving a notification does not extend your deadline.
• If you have not yet been notified, check your business's VAT revenues immediately against the threshold to assess your obligation.

Compliance is not optional and not deferrable. Any business that has not completed Fatoora integration by 30 June 2026 will face penalties immediately after the deadline, with no exceptions and no further grace periods.

Phase 2 Technical Requirements: What Your System Must Actually Do

Phase 2 — the Integration Phase — goes far beyond simply generating digital invoices. Your invoicing system must interface directly and in real time with ZATCA's Fatoora platform. Here are the non-negotiable technical requirements for full compliance:

• Invoice Format: All invoices must be issued in XML or PDF/A-3 format with embedded XML data — plain PDF or Word documents are not accepted.
• Cryptographic Stamp: Each invoice must carry a cryptographic hash stamp to ensure authenticity and prevent tampering after issuance.
• Unique UUID: Every single invoice requires a universally unique identifier that is never reused across your system.
• ZATCA-Compliant QR Code: A QR code meeting ZATCA's precise technical specifications must appear on every invoice you issue.
• Additional Mandatory Data Fields: Phase 2 requires detailed tax breakdowns per line item, going well beyond what Phase 1 demanded.
• Real-Time B2B Clearance: Business-to-business invoices must be cleared by the Fatoora platform before being shared with the buyer — real-time, every time.
• B2C Reporting: Consumer invoices must be reported to Fatoora within 24 hours of issuance without exception.

Attempting to implement these requirements manually or through a non-certified solution is both time-consuming and high-risk. A single technical error — a missing UUID, a malformed QR code, an incompatible XML structure — can cause invoices to be rejected or flagged as non-compliant, triggering penalties immediately.

Penalties for Non-Compliance: Real Numbers You Cannot Ignore

ZATCA applies a progressive, escalating penalty structure for e-invoicing violations. The grace period for voluntary compliance expires permanently on 30 June 2026 — after that date, all penalties apply in full with no further relief available:

• Failure to issue or retain e-invoices: Starts at SAR 5,000, escalating with each repeat violation over a 12-month period.
• Non-compliant or missing QR codes: Up to SAR 10,000 per invoice.
• Modifying or deleting an issued e-invoice: From SAR 10,000 up to SAR 50,000 per offense.
• Late B2C invoice reporting: SAR 1,000 per day of delay beyond the 24-hour reporting window.
• Progressive repeat violations: After four violations within 12 months, individual fines can reach SAR 40,000–50,000 per offense.

To put this in real terms: a business issuing 100 invoices per month with QR code compliance errors could face penalties exceeding SAR 1,000,000 in a single year. The financial risk of inaction is orders of magnitude greater than the cost of a proper compliance solution — and the window to act is closing fast.

How Watily Solves This

Watily's ZATCA-compliant e-invoicing integration was built specifically for Saudi small and medium businesses that need fast, reliable Phase 2 compliance without the need for custom software development, IT teams, or multi-month implementation projects.

Here is exactly what Watily's e-invoicing solution provides:

• Direct Fatoora integration: Watily connects your business securely and in real time to ZATCA's Fatoora platform — fully certified and ready to go.
• Automatic XML and PDF/A-3 generation: Every invoice is generated in the correct format automatically, with zero manual formatting work.
• Cryptographic stamps and UUIDs: Applied automatically on every invoice — no technical knowledge required on your end.
• ZATCA-compliant QR codes: Generated and embedded automatically on every invoice, meeting ZATCA's exact technical specifications.
• Real-time B2B clearance and B2C reporting: Handled automatically in the background so you never miss a clearance step or reporting window.
• Compliance dashboard: Track the Fatoora status of every invoice at a glance — cleared, pending, or flagged — with full audit history.
• Dedicated Saudi support team: ZATCA compliance specialists available throughout the week to answer questions and resolve issues quickly.

Hundreds of Saudi businesses are already using Watily to manage their ZATCA e-invoicing with full confidence. Setup takes hours, not weeks, and you will be fully integrated with Fatoora well before the 30 June 2026 deadline.

Do not let a compliance deadline become a financial crisis for your business. Register with Watily today and complete your ZATCA Wave 24 Fatoora integration before the 30 June 2026 deadline. The platform is ready, the compliance team is standing by, and there are fewer than 40 days left. Act now — start your free setup today.