ZATCA Wave 24: 41 Days Left to Comply Before SAR 50,000 Fines

ZATCA Wave 24: The June 30, 2026 Deadline Is 41 Days Away — Are You Ready?

If your business recorded VAT-subject revenues exceeding SAR 375,000 in 2022, 2023, or 2024, you fall under ZATCA's Wave 24 e-invoicing mandate. The integration deadline is June 30, 2026 — exactly 41 days from today. Miss it, and you face fines between SAR 5,000 and SAR 50,000, plus per-invoice penalties of up to SAR 10,000 for non-compliant QR codes. More importantly, ZATCA's penalty waiver initiative — which has allowed businesses to correct past non-compliance without financial consequences — also expires on June 30, 2026. After that date, there is no more grace.

ZATCA announced Wave 24 on September 26, 2025, making it the broadest Phase 2 e-invoicing expansion yet. For the first time, the revenue threshold drops to SAR 375,000, pulling thousands of small and medium-sized businesses — restaurants, retailers, freelancers, clinics, and service providers — into the real-time integration requirement. The integration window runs from April 1 to June 30, 2026. Here is everything you need to know to get compliant before the clock runs out.

Who Must Comply With ZATCA Wave 24?

Wave 24 applies to all VAT-registered businesses with taxable revenues that exceeded SAR 375,000 in any single year among 2022, 2023, or 2024. The threshold is significantly lower than previous waves, which is why this wave brings in a much broader population of businesses for the first time. Key eligibility facts:

• Taxable revenue exceeding SAR 375,000 in any of 2022, 2023, or 2024
• All VAT-registered business types and sectors are included — no exemptions by category
• Integration window: April 1, 2026 through June 30, 2026
• ZATCA notifies affected taxpayers at least six months before their individual integration date
• If you have not received a notification yet, log in to the ZATCA taxpayer portal to verify your status immediately

ZATCA uses a risk-based approach to sequence businesses within the April–June window. Even if your specific integration date has not arrived yet, starting preparation now — selecting a compliant invoicing platform and understanding what Phase 2 requires technically — means you will be ready the moment your integration date is confirmed. Waiting for the notification before acting almost guarantees you will run out of time for testing and training.

Technical Requirements: What Phase 2 Integration Actually Means

Phase 2 of ZATCA e-invoicing goes far beyond Phase 1. Simply generating a PDF invoice with a QR code is no longer sufficient. Under Phase 2, your invoicing system must be directly connected to ZATCA's Fatoora platform via API, exchanging every invoice in real time. The specific technical requirements you must meet are:

• XML/UBL 2.1 or PDF/A-3 format: All invoices must be issued in these structured formats with an embedded cryptographic stamp for authenticity
• Unique UUID per invoice: Every invoice requires a universally unique identifier generated at the moment of issuance — no duplicates, no manual entry
• Compliant QR code: Mandatory on every invoice. A missing or non-compliant QR code carries a penalty of up to SAR 10,000 per invoice
• Real-time clearance for B2B invoices: Business-to-business invoices must be submitted to ZATCA and cleared before they are delivered to the buyer in any form
• 24-hour reporting for B2C simplified invoices: Consumer-facing invoices must be reported to ZATCA's Fatoora platform within 24 hours of issuance — no exceptions
• Direct API connection to Fatoora: Manual data entry, email submissions, and batch uploads are not accepted. Your system must connect to ZATCA's platform programmatically and automatically

In practice, this means that traditional accounting spreadsheets, basic PDF invoicing tools, and most legacy ERP systems without a certified Fatoora integration will not meet the requirements. You need a certified, integrated solution that handles both the technical invoice format and the live API connection to ZATCA's platform on your behalf.

Penalties After June 30, 2026

Throughout 2026, ZATCA has run an initiative to cancel fines and exempt taxpayers from penalties, giving businesses that missed earlier integration deadlines a chance to get compliant without facing financial consequences. This initiative expires on June 30, 2026 — the same date as the Wave 24 deadline. After that date, the full ZATCA penalty framework applies without exception:

• SAR 5,000 to SAR 50,000 per violation of real-time reporting requirements
• Up to SAR 10,000 per invoice for missing or non-compliant QR codes on any invoice you issue
• Progressive penalties for repeated violations within a 12-month period — fines increase with each subsequent breach in the same year
• Input VAT denial for your clients: Businesses that receive your non-compliant invoices cannot reclaim their input VAT, which damages your commercial relationships and may cause clients to switch to compliant suppliers
• Potential suspension of VAT registration for persistent, serious non-compliance over time

The cost of non-compliance compounds quickly. A single audit that identifies several months of non-compliant invoices can result in fines that dwarf the cost of integration. Starting now, with 41 days remaining, is significantly less expensive — financially and operationally — than dealing with penalties, client disputes, and VAT registration issues after the deadline.

How Watily Solves This

Watily is a Saudi no-code SaaS platform built specifically for small and medium businesses operating in the Kingdom. Its ZATCA-integrated e-invoicing system handles every Phase 2 technical requirement automatically — no programming knowledge, no IT staff, no complex configuration required.

When you manage your invoicing through Watily, the platform automatically takes care of every requirement on your behalf:

• Generating invoices in ZATCA-approved XML format with the required cryptographic stamp embedded in every file
• Creating a unique, valid QR code and UUID for every invoice at the moment of issuance
• Submitting B2B invoices to the Fatoora platform in real time for clearance before delivery to your buyer
• Reporting B2C simplified invoices to ZATCA within 24 hours automatically — no manual steps required from your team
• Storing a complete, auditable archive of all invoices for ZATCA inspection and retention requirements
• Providing an Arabic and English dashboard to monitor invoice status, clearance confirmations, and compliance health in real time
• Integrating e-invoicing with your online store, booking system, and point-of-sale operations in a single platform

Whether you run an e-commerce store, a restaurant, a beauty salon, a medical clinic, or a professional services firm, you can register with Watily today and start issuing fully ZATCA-compliant Phase 2 invoices within 24 hours. No developer is needed, no complex API work is required on your end — Watily handles the full technical integration with Fatoora so you can focus on running your business.

Do not wait until the final week of June. The deadline for ZATCA Wave 24 compliance and for the penalty waiver initiative is the same day: June 30, 2026. Sign up on Watily now — registration is free, setup takes minutes, and the alternative is fines of up to SAR 50,000 that your business does not need to pay. Protect your compliance, protect your client relationships, and protect your bottom line before the deadline arrives.