As Saudi Arabia forges ahead with its digital economy transformation, the implementation of ZATCA e-invoicing stands as a cornerstone in modernizing tax infrastructure and improving VAT transparency. For businesses operating in the Kingdom, the transition to ZATCA-approved e-invoicing in Saudi Arabia is no longer optional. With multiple waves of Phase 2 now underway, there is an urgent need for timely compliance.
What is ZATCA E-Invoicing?
The Zakat, Tax and Customs Authority (ZATCA) introduced e-invoicing regulations on 4 December 2020. The implementation is being rolled out in two phases:
Phase 1: Generation Phase
Effective Date: 4 December 2021
Requirements: Businesses must generate electronic invoices (e-invoices) and electronic notes using compliant systems, eliminating handwritten or PDF-based invoices.
Phase 2: Integration Phase
Effective Date: 1 January 2023
Requirements: Taxpayers must integrate their invoicing systems with ZATCA’s Fatoorah platform for real-time invoice clearance and reporting. This phase is being executed in waves.
| Wave | Turnover Criteria | Implementation Timeline |
| 11 | More than SAR 3B in 2021 | 1 Jan 2023 – 30 Jun 2023 |
| 12 | SAR 500M to 3B in 2021 | 1 Jul 2023 – 31 Dec 2023 |
| 13 | More than SAR 250M in 2021 or 2022 | 1 Oct 2023 – 31 Jan 2024 |
| 14 | More than SAR 150M in 2021 or 2022 | 1 Nov 2023 – 29 Feb 2024 |
| 15 | More than SAR 100M in 2021 or 2022 | 1 Dec 2023 – 31 Mar 2024 |
| 16 | More than SAR 70M in 2021 or 2022 | 1 Jan 2024 – 30 Apr 2024 |
| 17 | More than SAR 50M in 2021 or 2022 | 1 Feb 2024 – 31 May 2024 |
| 18 | More than SAR 40M in 2021 or 2022 | 1 Mar 2024 – 30 Jun 2024 |
| 19 | More than SAR 30M in 2021 or 2022 | 1 Jun 2024 – 30 Sep 2024 |
| 20 | More than SAR 25M in 2022 or 2023 | 1 Oct 2024 – 31 Dec 2024 |
| 21 | More than SAR 15M in 2022 or 2023 | 1 Nov 2024 – 31 Jan 2025 |
| 22 | More than SAR 10M in 2022 or 2023 | 1 Dec 2024 – 28 Feb 2025 |
| 23 | More than SAR 7M in 2022 or 2023 | 1 Jan 2025 – 31 Mar 2025 |
| 24 | More than SAR 5M in 2022 or 2023 | 1 Feb 2025 – 30 Apr 2025 |
| 25 | More than SAR 4M in 2022 or 2023 | 1 Mar 2025 – 31 May 2025 |
| 26 | More than SAR 3M in 2022 or 2023 | 1 Apr 2025 – 30 Jun 2025 |
| 27 | More than SAR 2.5M in 2022 or 2023 | 1 May 2025 – 31 Jul 2025 |
| 28 | More than SAR 2M in 2022 or 2023 | 1 Jun 2025 – 31 Aug 2025 |
| 29 | More than SAR 1.75M in 2022 or 2023 | 1 Jul 2025 – 30 Sep 2025 |
| 30 | More than SAR 1.5M in 2022 or 2023 | 1 Aug 2025 – 31 Oct 2025 |
Businesses falling into these turnover bands must integrate with ZATCA and begin issuing e-invoices via approved platforms within the specified timelines to avoid non-compliance penalties.
Nowara Infotech: Your Trusted Partner for ZATCA Compliance
Nowara Infotech is a leading technology partner offering ZATCA e-invoicing solutions built on Microsoft Dynamics 365 Business Central. As a certified Microsoft Partner and a ZATCA-compliant technology provider, Nowara delivers scalable and future-ready compliance tools for businesses of all sizes.
Key Capabilities:
- Full Phase 2 C Integration with real-time ZATCA platform connectivity
- QR Code Generation & Validation
- XML Conversion & Cryptographic Signatures
- Centralized Dashboard with Audit Logs & Reports
- ZATCA E-Invoicing QR Code Scanner support
- Multi-industry support with custom configuration
Why Choose Nowara Infotech for e-invoicing?
| Feature | Details |
| Technology Base | Microsoft Dynamics 365 Business Central |
| Compliance Coverage | 100% ZATCA-compliant (Phases 1 & 2) |
| Microsoft Certified Partner | Yes |
| Geographic Presence | Headquartered in UAE, with strong operations in Saudi Arabia |
| Integration with Fatoorah Platform | End-to-end ZATCA e-invoicing connectivity |
| Scalable Architecture | SME to Enterprise-level support |
ZATCA e-invoicing is not just a regulatory requirement; it’s a stepping stone toward full digital transformation in Saudi Arabia. Whether your business is in the early waves or scheduled for the upcoming 20th wave with a deadline of 31 October 2025, timely action is essential.
Partner with Nowara Infotech to ensure a seamless, secure, and scalable ZATCA-compliant invoicing journey. Get in touch today for a free ZATCA readiness audit or demo.
