Article
ZATCA Wave 25: Is Your Business Included, and What to Do Before 1 February 2027
ZATCA wave 25 covers Saudi businesses with VAT revenue above SAR 187,500 in 2022–2025. Check if you're included and what to do before 1 February 2027.
ZATCA E-Invoicing
ZATCA Phase 2 e-invoicing from sale to FATOORA
This page helps Saudi businesses meet ZATCA Phase 2 e-invoicing rules and plan their FATOORA integration. HYP ERP issues standard and simplified invoices from ERP and HYPOS sales and exchanges them with FATOORA, so billing teams keep their routine.
What is HYP ERP ZATCA E-Invoicing?
ZATCA E-Invoicing is the ZATCA Phase 2 certified Saudi electronic invoicing solution built into HYP ERP and HYPOS. It supports ZATCA Phase 1 and Phase 2 requirements with direct FATOORA integration, structured standard B2B and simplified B2C invoices, automatic QR codes, invoice clearance, reporting and archiving.
Under Phase 2, an electronic invoice is structured data with security controls, not a PDF. Businesses that export invoices to a separate tool tend to handle standard and simplified invoices inconsistently and lose sight of their status. HYP ERP keeps the e-invoice inside the sales, POS and accounting flow where the transaction began.
HYP ERP
ZATCA e-invoicing at a glance
Updated 28 October 2026
- Who it applies to
- Saudi VAT taxpayers, integrated in waves. Wave 25 covers VAT-taxable revenue above SAR 187,500 in any year from 2022 to 2025.
- Key dates
- Wave 25 must integrate with FATOORA no later than 1 February 2027. ZATCA notifies each business at least six months before its date.
- Invoice types
- Standard (mostly B2B) is cleared before the buyer receives it. Simplified (mostly B2C) is reported within 24 hours. Business sales under SAR 1,000 may be simplified.
- Rate
- VAT is 15% in Saudi Arabia. Exports are zero-rated but still need a standard tax invoice.
- Penalties
- A written notice first, then SAR 1,000, SAR 5,000, SAR 10,000 and SAR 40,000 for repeats within 12 months.
- How HYP ERP helps
- ZATCA Phase 2 certified, with direct FATOORA integration for clearance and reporting, built into HYP ERP sales and HYPOS.
What ZATCA Phase 2 requires, rule by rule
| What the rule requires | How HYP ERP handles it |
|---|---|
| Clear standard tax invoices with ZATCA before you share them with the buyer. | Issues standard B2B invoices from HYP ERP sales and sends them through ZATCA clearance. |
| Report simplified tax invoices to ZATCA within 24 hours of issue. | Issues simplified invoices at the HYPOS point of sale and reports them through the same e-invoicing engine. |
| Issue every invoice as XML in UBL 2.1, with a UUID, previous invoice hash and counter. | Generates the structured electronic content automatically for each applicable invoice. |
| Put a QR code on simplified invoices, generated by your own system. | HYPOS simplified invoices pass through the e-invoicing engine, which adds the QR code. |
| Onboard every device that issues invoices on FATOORA, so each gets its own CSID. | Configures and tests the deployment for your invoices and operating environment as part of onboarding. |
| Resolve rejections; standard invoices without the buyer's name, address and VAT number are rejected. | Shows ZATCA responses, invoice statuses and exceptions in one view, so finance follows up each rejection. |
| Keep e-invoices; deleting or changing an invoice after issue is a violation. | Archives e-invoices alongside the accounting records where each sale was posted. |
Readiness checklist for FATOORA go-live
- Check VAT-taxable revenue for 2022 to 2025 against SAR 187,500.
- Confirm in writing that your software supports Phase 2 clearance and reporting.
- List every POS terminal, branch system and device that issues invoices.
- Record each B2B customer's name, address and VAT number.
- Generate an OTP on FATOORA for each device and obtain its CSID.
- Test standard invoices for clearance and simplified invoices for reporting.
- Train cashiers and billing staff on rejected invoices and offline terminals.
- Aim to be integrated by mid-January, ahead of 1 February 2027.
Inside the ZATCA Phase 2 e-invoicing solution
Direct FATOORA integration
Exchange invoices with the FATOORA platform from configured HYP ERP deployments, for both clearance and reporting.
Standard B2B tax invoices
Issue structured standard tax invoices to business customers from HYP ERP sales and send them through ZATCA clearance.
Simplified B2C invoices from HYPOS
Issue simplified invoices at the point of sale in HYPOS and report them to ZATCA through the same e-invoicing engine.
QR codes and structured invoice content
Generate the QR code and the structured electronic content automatically for each applicable invoice.
Invoice status, exceptions and archiving
Monitor ZATCA responses and invoice statuses, follow up rejected or incomplete invoices, and keep e-invoices archived alongside the accounting records.
How an e-invoice moves from sale to FATOORA
Issue
Create the standard or simplified invoice from the business transaction.
Format
Generate the structured content and QR code.
Exchange
Clear or report the invoice with FATOORA.
Follow up
Review responses, exceptions and the related accounting entries.
What sales, POS and finance teams in Saudi Arabia gain
For B2B sales and billing
Standard invoices cleared from the same order-to-invoice process, with no manual export to another system.
For retail cashiers
Simplified invoices reported from HYPOS, so POS sales and e-invoicing no longer run on separate tracks.
For finance and IT
One view of invoice statuses, ZATCA responses and exceptions, with clear ownership of onboarding and the integration environment.
From the blog
Guides on ZATCA e-invoicing
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ZATCA Standard vs Simplified Tax Invoices: Which to Issue, With Examples
When to issue a ZATCA standard or simplified tax invoice in Saudi Arabia, with worked examples, the SAR 1,000 rule, required fields and credit notes.
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Data Residency in the UAE and Saudi Arabia: What Cloud ERP Buyers Should Ask
Which business data must stay in the UAE and Saudi Arabia, the October 2026 changes, cloud regions available, and 10 questions for cloud ERP vendors.
ZATCA e-invoicing FAQs
Does HYP ERP support ZATCA Phase 2?
Yes. HYP ERP is a ZATCA Phase 2 certified e-invoicing solution with direct FATOORA integration, built into its ERP and HYPOS POS workflows, covering clearance, reporting, QR codes and archiving for Saudi taxpayers.
Does the solution cover B2B and B2C invoices?
Yes. HYP ERP ZATCA e-invoicing handles standard tax invoices for B2B customers through clearance and simplified tax invoices for B2C sales through reporting, each following its own Phase 2 handling.
Can HYPOS POS issue ZATCA e-invoices?
Yes. HYPOS simplified invoices pass through the HYP ERP ZATCA e-invoicing engine, which adds the QR code and reports them to FATOORA, so retail sales and Saudi e-invoicing run in one flow.
Is installing the software enough for ZATCA compliance?
No. Each Saudi taxpayer completes ZATCA onboarding, and the HYP ERP e-invoicing deployment is configured and tested for its invoices and operating environment. Ongoing compliance with the rules remains the taxpayer's responsibility.
Plan your FATOORA go-live with HYP ERP
See standard and simplified invoices travel from HYP ERP and HYPOS to FATOORA in a live walkthrough.