ZATCA Wave 25: what it means for your business, and how to get your Odoo ready before 1 February 2027

ZATCA has announced Wave 25 of the e-invoicing integration phase. It covers every taxpayer whose VAT-subject revenue exceeded SAR 187,500 in 2022, 2023, 2024 or 2025. These businesses must integrate their e-invoicing solution with the Fatoora platform no later than 1 February 2027.

This is the widest wave so far. The threshold is half that of Wave 24, so many small and growing businesses are now in scope: shops, cafés, service companies, contractors and distributors. The good news is that four months is enough time, if you start now.

Are you in scope?

Look at your VAT returns for 2022 to 2025. If VAT-subject revenue was above SAR 187,500 in any one of those years, you are in Wave 25. That applies even if your revenue is lower today.

ZATCA notifies targeted taxpayers directly. Do not wait for the notice to start, because integration and testing take time.

What "integration" actually means

Phase 1 was about generating compliant electronic invoices. Phase 2, the integration phase, connects your system to ZATCA. In practice your invoicing system must:

• Issue invoices in ZATCA's XML format (UBL 2.1) with the additional required fields.
• Sign each invoice with a cryptographic stamp and include a QR code.
• Send standard (B2B) tax invoices to ZATCA for clearance before they are shared with the customer.
• Report simplified (B2C) invoices, such as point-of-sale receipts, to ZATCA within 24 hours.

A PDF invoice with a QR code is no longer enough. The system itself has to talk to Fatoora.

Five checks for businesses running Odoo

1. Version and edition. Confirm your Odoo version supports ZATCA Phase 2 for every place you issue invoices: accounting, sales and point of sale. Older versions or heavily customised databases may need an upgrade first.
2. Company and VAT data. Your company VAT number, commercial registration and full Saudi address must be correct. ZATCA rejects invoices with missing or malformed fields.
3. Customer master data. B2B invoices need the buyer's VAT number and address in the right structure. Clean your customer list now, not on go-live day.
4. Custom invoice layouts and modules. Custom reports, discounts, advance payments and credit notes are where most rejections happen. Test every invoice type you really use.
5. Onboarding and testing. Each invoicing channel is onboarded with a one-time password from the Fatoora portal. Test in ZATCA's simulation environment before switching to production.

A practical timeline

Aim to be live and stable before the deadline, not on it. The final weeks before every wave are the busiest for implementers and for ZATCA's platform.

Common mistakes to avoid

• Assuming "we already have QR codes" means you are compliant.
• Testing only a standard sales invoice, and forgetting credit notes, advance payments and POS.
• Leaving customer VAT numbers and addresses incomplete.
• Customising invoice reports without re-testing them against ZATCA's validation.

How PlusTech can help

PlusTech is a Gold Odoo Partner based in Riyadh, with a team working entirely inside Saudi Arabia and more than 250 Odoo implementations. For Wave 25 we can:

• Review your current Odoo system and tell you exactly what needs to change.
• Upgrade or configure Odoo for Phase 2 across accounting, sales and point of sale.
• Run onboarding and testing with you in the simulation environment, then go live in production.
• Support businesses moving from a basic accounting tool to Odoo, with ZATCA compliance included from day one.

Official reference

• ZATCA: criteria for selecting targeted taxpayers in Wave 25 of the integration phase

Start with a readiness review

Tell us which Odoo version you use and how you issue invoices today. We will give you a clear plan to be compliant before 1 February 2027.

Request a consultation