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ZATCA Phase 2 Wave 24: Compliance Checklist for Saudi Arabian Businesses
- 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 were required to integrate their ERP or billing system with the Fatoora portal by 30 June 2026.
If your business was in Wave 23 or Wave 24, that deadline has now passed — if your integration is not live, treat this as urgent remediation, not planning. ZATCA continues to announce new waves on a rolling basis, so businesses not yet notified should confirm their VAT-taxable turnover against the current wave thresholds.
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 — the Wave 24 deadline of 30 June 2026 has passed, so treat this as immediate remediation if not already live
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.
See our e-invoicing solutionsFrequently Asked Questions
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