What is Phase 2?
The integration phase. Every invoice leaves your system in an approved electronic format (XML), with a cryptographic stamp and a QR code, and connects to ZATCA's Fatoora platform.
- Simplified tax invoices (to consumers, like restaurant and café receipts) are reported to ZATCA within 24 hours of issue.
- Standard tax invoices (between businesses) must be cleared by ZATCA before they reach the buyer.
Who does Wave 25 cover?
Every VAT-registered business whose taxable revenue exceeded SAR 187,500 in any year from 2022 to 2025. The requirement starts on 1 February 2027.
What are the fines?
According to ZATCA, failing to issue an e-invoice starts at SAR 5,000, and deleting or amending an invoice after issue starts at SAR 10,000, rising with repeat violations. Some violations start with a warning.
What your POS has to do
- Register each device on the Fatoora platform with a one-time code and obtain its certificate.
- Stamp every invoice cryptographically and chain it to the one before it.
- Print a QR code on the invoice carrying its key data.
- Send invoices to ZATCA on time, and handle rejections if they happen.
- Handle returns with a credit note, never by editing or deleting the invoice.
How to prepare before your wave
- Check your VAT number and national address on the ZATCA portal, because both appear on every invoice.
- Review your taxable revenue from 2022 to 2025 to see whether Wave 25 covers you.
- Choose a POS that implements Phase 2 on the device itself, not as an external add-on.
- Register every register device on the Fatoora platform well before the deadline.
- Train your staff: returns by credit note, discounts by permission, and no deleting invoices.
Common mistakes that lead to fines
- Deleting or editing an invoice after issue instead of issuing a credit note.
- Issuing manual invoices, or invoices from an old system, after the deadline.
- Register devices with the wrong clock, so invoice dates don't match reality.
- Ignoring invoices the platform rejected instead of correcting and resending them.
How CashHub does it
Full Phase 2 on the device itself: signing, QR code and the invoice chain, with no middleman. If the internet drops, the invoice is issued as usual and sent once you're back online. If there's a problem with ZATCA or the device clock, the register won't take payment until it's fixed, so no wrong invoice goes out. Returns, full or partial, refund VAT at the correct proportion, and invoices can never be deleted.
Sources: ZATCA announcement on Wave 25 · ZATCA announcement on e-invoicing fines
Frequently asked questions
Do businesses that aren't VAT-registered have to integrate?
The Phase 2 requirement covers VAT-registered businesses, in the waves ZATCA sets. CashHub works for unregistered shops today, and switches to tax invoices when they register, with nothing to change.
Can I edit an invoice after issuing it?
No. Any correction is made with a credit or debit note linked to the original invoice; deleting or editing an invoice is a violation.
What happens if the internet goes down?
Simplified invoices are reported within 24 hours, so your customer gets the invoice as usual and it goes to ZATCA once you're back online.
What's the difference between simplified and standard invoices?
Simplified invoices go to consumers, like restaurant and café receipts, and are reported within 24 hours. Standard invoices are between businesses and need ZATCA clearance before they reach the buyer.
Does every register device need registering?
Yes. Each device is registered on the Fatoora platform with a one-time code and gets its own certificate.
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