ZATCA Phase 2 Wave 24: Compliance Checklist for Saudi Arabian Businesses Before June 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?

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

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.