ZATCA March 31, 2026 Deadline: Wave 23 Compliance Guide (SAR 750K+ Revenue)

What is the March 31, 2026 ZATCA deadline?

March 31, 2026 is the integration deadline for Wave 23 of ZATCA’s Phase 2 e-invoicing. By this date, affected businesses must have their e-invoicing systems connected to ZATCA’s Fatoora platform and be able to clear (B2B) or report (B2C) invoices in line with Phase 2 rules. Missing the deadline can lead to fines, VAT risks, and disruption to invoicing.

Who must comply by March 31, 2026? (Wave 23 criteria)

Wave 23 applies to VAT-registered taxpayers whose VAT-subject revenue exceeded SAR 750,000 in any of the following years:

• 2022
• 2023
• 2024

So if your business had revenue above SAR 750,000 in any of those years, you are in Wave 23 and must be Phase 2–compliant by March 31, 2026. This typically includes many small and medium businesses: retailers, wholesalers, service companies, and others above that threshold.

ZATCA uses the revenue it has on file (from VAT returns and declarations). You can confirm your wave and deadline in the Fatoora portal. If you are not sure whether you fall in Wave 23, check the portal or ask your tax adviser.

What you must have in place by March 31, 2026

1. Fatoora and EGS units — Your business must be set up in Fatoora, and every device or system that issues invoices (each EGS unit) must be registered and linked to ZATCA with a valid production CSID.
2. Compliant invoice format — Invoices must be in ZATCA’s required format (UBL 2.1 XML or PDF/A-3 with embedded XML), with all mandatory fields, digital signature, and QR code.
3. Clearance (B2B) — For B2B standard tax invoices, each invoice must be sent to ZATCA for clearance before you share it with the buyer. Your system must wait for clearance (or handle rejection) and only then deliver the invoice.
4. Reporting (B2C) — For B2C simplified tax invoices, you issue first and report to ZATCA within 24 hours. Your system must support this reporting without fail.
5. No gaps — From March 31, 2026 onward, all tax invoices that fall under Phase 2 must go through this process. You cannot issue “old style” or non-integrated invoices for Phase 2–covered transactions after the deadline.

So by the deadline you need: correct format, signing, QR, and live integration with Fatoora for clearance and reporting.

How missing the March 31 deadline affects your business

Operational impact

• You may not be able to issue compliant B2B invoices, which can block or delay sales and payments.
• B2C invoices not reported on time can be flagged in ZATCA’s systems and increase audit risk.
• Customers and partners may refuse non-compliant or late-reported invoices.

Financial and compliance impact

• Fines — ZATCA can impose penalties for non-issuance or non-archiving of e-invoices (typically SAR 5,000–50,000 per violation), and higher amounts for deletion or improper amendment of e-invoices (SAR 10,000–50,000). Repeat violations tend to attract higher fines. See our ZATCA penalties guide for full detail.
• VAT — Input VAT deduction can be challenged or disallowed if invoices do not meet e-invoicing rules.
• Audits — Non-compliance makes you more likely to be selected for checks and follow-up by ZATCA.

Reputation and continuity

• Delayed or failed integration can harm relationships with buyers who expect compliant invoices.
• Catching up after the deadline under pressure increases the risk of errors and extra cost.

The goal is to be fully compliant before March 31, 2026, not to “fix it later.”

Penalties at a glance (if you are non-compliant)

Violation	Typical penalty range
Not issuing or not archiving e-invoices as required	SAR 5,000 – 50,000
Deleting or amending e-invoices (other than by credit/debit note)	SAR 10,000 – 50,000
Missing QR code on simplified invoices	Warning (can escalate)
Failing to inform ZATCA of system malfunctions	Warning, up to SAR 50,000
Repeat violations	Higher fines, closer scrutiny

Penalties are per violation type and can increase for repeated breaches. This is a summary; the full ZATCA penalties and violations framework applies.

Practical timeline: how to prepare for March 31, 2026

Now – February 2026

• Confirm in Fatoora that you are in Wave 23 and note the exact deadline (March 31, 2026).
• Decide: build in-house (UBL, CSID, QR, Fatoora API) or use a ZATCA-compliant solution or API. For most businesses, a ready-made solution is faster and lower risk.
• If using a solution/API: sign up, create EGS unit(s), complete Fatoora onboarding (OTP, compliance checks, production CSID). Test in sandbox first, then go live.
• If building in-house: allocate time for UBL 2.1, ZATCA OIDs, PIH chain, QR encoding, and Fatoora integration; plan for at least several weeks of development and testing.

March 2026

• Run a final check: all EGS units live, all B2B invoices cleared, all B2C invoices reported within 24 hours. Fix any errors before the 31st.
• Train staff on the new process (e.g. “don’t send B2B invoice to customer until it’s cleared”).
• From March 31, 2026: only issue Phase 2–compliant invoices for in-scope transactions.

After March 31, 2026

• Monitor clearance and reporting success; handle rejections and retries. Renew certificates before they expire.

If your revenue exceeded SAR 750,000 in 2022, 2023, or 2024, treat March 31, 2026 as a hard deadline and aim to be ready at least a few weeks earlier.

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