Saudi Arabia Extends E-Invoicing Penalty Relief and Launches Wave 23 of Integration
The Zakat, Tax and Customs Authority (ZATCA) has announced a six-month extension to its fines and penalties relief initiative, while also rolling out the next phase of mandatory e-invoicing integration under the FATOORA platform.
Extended Grace Period: A Second Chance for Taxpayers
On June 27, 2025, ZATCA confirmed that its penalty cancellation initiative will continue from July 1 to December 31, 2025. To benefit, taxpayers must:
- Be registered under applicable tax laws
- Submit any outstanding VAT returns
- Pay all principal tax dues
Installment payment plans are also available upon request. However, the exemption does not apply to:
- Tax evasion violations;
- Penalties paid before July 1, 2025;
- Penalties on VAT returns filed after June 30, 2025.
ZATCA advises all entities to review the full guidelines published on its official website to ensure eligibility.
Wave 23: New Integration Deadline for Mid-Sized Businesses
In a parallel development, ZATCA has launched Wave 23 of its e-invoicing integration rollout. Announced on July 10, 2025, this wave targets businesses with annual VAT-subjected revenues exceeding SAR 750,000 (approx. EUR 172,500) during 2022, 2023, or 2024.
Affected entities must complete full integration with the FATOORA system by March 31, 2026. ZATCA will issue direct notifications to all impacted taxpayers to guide compliance efforts.
There’s more you should know about e-invoicing in Saudi Arabia – learn more about the new and upcoming regulations.
