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ZATCA Phase 2 Wave 24: Compliance Checklist for Saudi Arabian Businesses Before June 2026
- By Lokesh Singh, Manager — Oracle Practice
- Published May 08, 2026
ZATCA (Zakat, Tax and Customs Authority) has officially announced Wave 24 for Phase 2 (Integration Phase) of Saudi Arabia's e-invoicing mandate. Businesses with annual VAT-taxable turnover exceeding SAR 375,000 must integrate their ERP or billing system with the Fatoora portal by 30 June 2026.
If your business was in Wave 23 or earlier — you're already in scope. If you're in Wave 24, your countdown starts now.
Phase 1 vs Phase 2: What Changed?
| Feature | Phase 1 (Generation) | Phase 2 (Integration) |
|---|---|---|
| Start Date | December 2021 | January 2023 onwards (wave-based) |
| Invoice Format | XML or PDF/A-3 with XML | UBL XML (PEPPOL BIS 3.0 based) |
| IRP Integration | Not required | Mandatory — real-time API clearance |
| B2B Invoices | Self-generated, no portal submission | Clearance required — ZATCA cryptographic stamp |
| B2C Invoices | QR code required | Reporting to Fatoora within 24 hours |
| Penalty for Non-compliance | SAR 1,000–50,000 | Up to SAR 50,000 + invoice invalidation |
Wave 24 Technical Requirements
For Phase 2 integration, your ERP solution must meet these ZATCA technical specifications:
1. UBL 2.1 XML Format
All invoices must be generated in Universal Business Language (UBL) 2.1 format, aligned with the ZATCA e-invoicing XML schema. This is different from the simpler XML allowed in Phase 1.
2. Cryptographic Stamp (CSID)
Your solution must go through the ZATCA onboarding process to obtain a Cryptographic Stamp Identifier (CSID). This involves:
- Generating a CSR (Certificate Signing Request) from your ERP
- Submitting it to ZATCA's Fatoora Simulation portal for testing
- Receiving the Production CSID after compliance testing
3. Anti-Tampering Mechanism
Each invoice must include a hash of the previous invoice (chaining mechanism), making it impossible to alter past invoices without detection.
4. UUID for Every Invoice
Every invoice requires a universally unique identifier generated by your ERP — separate from your internal invoice number.
ERP-Specific Integration Path
Oracle Fusion Cloud
Oracle's KSA localisation module supports ZATCA Phase 2 natively from release 23D onwards. Ensure your Oracle Cloud environment is on the latest quarterly update and that the Saudi Arabia Tax Reporting feature is enabled in Opt-In.
Oracle EBS (R12)
Oracle EBS does not have native ZATCA Phase 2 support. You need a middleware layer (Oracle Integration Cloud or a certified third-party GSP) that transforms EBS AR invoices to UBL XML, handles the CSID stamping, and sends to Fatoora.
SAP S/4HANA
SAP's Document and Reporting Compliance (DRC) add-on covers ZATCA Phase 2. Requires SAP S/4HANA 2021 or later plus the Saudi Arabia country version.
Wave 24 Compliance Checklist
- Confirm your annual VAT-taxable turnover threshold (Wave 24: > SAR 375,000)
- Register your ERP solution on ZATCA's Fatoora Simulation environment
- Complete CSID onboarding (allow 2–4 weeks for ZATCA processing)
- Test all document types: Standard Tax Invoice, Simplified Tax Invoice, Credit Note, Debit Note
- Validate UUID generation is unique per invoice
- Test hash chaining across invoice sequences
- Verify B2B invoices receive ZATCA clearance stamp (green checkmark) before delivery
- Verify B2C invoices are reported to Fatoora within 24 hours
- Configure error handling for network outages (ZATCA allows offline mode with catch-up reporting)
- Go live on Fatoora Production by 30 June 2026
Common ZATCA Rejection Errors and Fixes
| Error Code | Cause | Fix |
|---|---|---|
| BV-01 | Invalid XML schema | Validate against ZATCA's latest XSD before submission |
| BV-14 | Missing Buyer VAT Number on B2B invoice | Make Buyer VAT mandatory for all B2B transactions in ERP |
| BV-23 | Hash chain broken | Re-sequence from the last successfully cleared invoice |
| CN-01 | Credit note references non-existent invoice UUID | Store original invoice UUID in ERP and reference correctly |
How ROSTAN Can Help
ROSTAN Technologies has delivered ZATCA Phase 2 implementations for Oracle Fusion Cloud and Oracle EBS clients across Saudi Arabia and the GCC. Our team handles end-to-end delivery: CSID onboarding, ERP configuration, UBL XML mapping, simulation testing, and production go-live — typically in 6–8 weeks.
Learn about our ZATCA e-invoicing solution or contact us for a Wave 24 readiness assessment.
Getting ZATCA-ready? ROSTAN delivers ZATCA Phase 2 clearance-model e-invoicing with an integration-ready API. See our ZATCA e-invoicing solution for Saudi Arabia and ZATCA & UAE e-invoicing platform.
E-Invoicing Compliance
We integrate statutory e-invoicing directly into Oracle EBS, Fusion and SAP — GST for India, ZATCA for Saudi Arabia, and the UAE, Malaysia and Bahrain mandates.
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