ZATCA Wave 25: what SAP Business One users must do before 1 February 2027
By Zain Abbas, Kodenova · Updated
Who is in Wave 25
ZATCA announced the criteria for Wave 25 on 24 July 2026. The wave covers resident taxpayers whose taxable revenue exceeded SAR 187,500 (about US$50,000) in any of the calendar years 2022, 2023, 2024 or 2025. It is the first wave that looks at 2025 revenue, so businesses founded in 2025 can also be included.
The threshold is low. Many small distributors, traders and service companies that run SAP Business One will fall into this wave.
The deadline
Wave 25 taxpayers must be ready to integrate with Fatoora by 1 February 2027. ZATCA sends a notification to each affected taxpayer before the date. Counting back, a safe plan starts no later than November 2026, because onboarding and testing take time and partners get busy near every deadline.
What Phase 2 requires from your SAP Business One
| Requirement | What it means in SAP B1 |
|---|---|
| UBL 2.1 XML | Every A/R invoice, credit memo and debit memo is converted to ZATCA’s XML format |
| Cryptographic stamp | Each invoicing unit signs its invoices with a certificate (CSID) obtained during onboarding |
| QR code | The QR code is generated and printed on your invoice layout |
| Clearance (B2B) | Standard tax invoices are sent to ZATCA and cleared before you share them with the buyer |
| Reporting (B2C) | Simplified invoices are reported to ZATCA within 24 hours |
| Status write-back | UUID, hash, QR and ZATCA status are saved on the SAP B1 document |
Step-by-step plan for SAP Business One users
- Confirm your wave. Check your ZATCA notification or the Fatoora portal.
- List your documents. A/R invoices, down payments, credit memos, debit memos, exports and any branch or POS documents.
- Check master data. Customer VAT numbers, addresses (building number, district, postal code) and item tax codes are the most common reasons for rejections.
- Choose the integration. Your SAP partner’s localisation, a ready connector such as ZatcaBridge, or a custom integration.
- Onboard each invoicing unit. Generate the CSR, get the OTP from Fatoora, obtain compliance and production CSIDs.
- Test in simulation. Send every document type, including negative scenarios.
- Update the invoice layout. Add the QR code and required fields in Crystal Reports or PLD.
- Go live and monitor. Watch rejected and pending documents daily for the first weeks.
Common mistakes we see
- Starting in January, when partners and ZATCA support are overloaded.
- Missing buyer address fields, which makes B2B invoices fail clearance.
- Treating every invoice the same. B2B and B2C follow different flows.
- No monitoring screen, so rejected invoices are found only at the VAT return.
Need help? Kodenova connects SAP Business One to ZATCA end to end. See our ZATCA integration guide or contact us with your SAP B1 version and document types.
Sources
- EY: Saudi Arabia announces 25th wave of Phase 2 e-invoicing integration (10 Aug 2026)
- ZATCA E-Invoicing
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Frequently asked questions
Who is in ZATCA Wave 25?
Resident VAT taxpayers whose taxable revenue exceeded SAR 187,500 in any of the calendar years 2022, 2023, 2024 or 2025, including businesses established in 2025 that crossed the threshold, according to the announcement reported by EY.
What is the Wave 25 deadline?
Taxpayers in Wave 25 must be ready to integrate with the Fatoora platform by 1 February 2027. ZATCA notifies affected taxpayers in advance.
Does SAP Business One support ZATCA Phase 2 by itself?
Your SAP Business One version and localisation matter. Many companies still need an integration layer that builds the XML from SAP B1 documents, signs it, calls ZATCA's APIs and writes the result back. Ask your SAP partner what your current setup covers.
How long does a ZATCA integration for SAP Business One take?
A typical project takes 2 to 6 weeks, depending on document types, number of company databases, branches and testing in ZATCA's simulation environment.
Ready to get started?
Tell us what you need. You get a clear technical answer, a fixed scope and a price, usually within 24 hours.