Are You in ZATCA Wave 25? SAR 187,500 VAT Revenue Rule Explained
- 1
VAT-registered?
Yes
- 2
VAT-subject revenue over SAR 187,500 in 2022–2025?
Any one year
- 3
Not already in Wave 23 or 24?
Wave 25 · 1 Feb 2027
The Wave 25 number: SAR 187,500
ZATCA’s Wave 25 criterion is not “your company is small.” It is a VAT-subject revenue test:
Taxpayers whose revenues subject to VAT exceeded SAR 187,500 during 2022, 2023, 2024 or 2025.
Source: ZATCA Wave 25 news (24 July 2026).
If that is you, and you were not already in an earlier integration wave, you must connect to Fatoora by 1 February 2027.
VAT-subject revenue vs “how much we sold”
Use supplies subject to VAT, not:
- Total bank inflows
- Exempt or out-of-scope amounts (unless ZATCA’s definition for your activity says otherwise)
- A single quiet year if an earlier year already crossed the line
Any one of the four years is enough. Example: 2022 was SAR 140,000, 2025 was SAR 210,000 → you still meet the test.
Simple examples
| Business | Likely Wave 25? | Why |
|---|---|---|
| VAT-registered salon, SAR 250k taxable in 2025 | Yes | Over 187,500 in a listed year; if not in 23/24 |
| Freelancer, VAT-registered, SAR 190k in 2023 only | Yes | One year above the line is enough |
| Shop already in Wave 24 (SAR 400k) | No (already earlier) | Earlier wave deadline already applied |
| Below VAT registration / never exceeded 187,500 in 2022–2025 | Unlikely this wave | Confirm in Fatoora; later waves may still come |
| Holding with several VAT numbers | Per taxpayer | Each VAT profile can have its own wave |
This is guidance, not a tax opinion. Your Fatoora notification and accountant decide the legal position.
Already in Wave 23 or 24?
If you were selected for a higher revenue wave, Wave 25 does not postpone you to 2027. Waves 23 and 24 deadlines were 31 March 2026 and 30 June 2026.
What “integrate with Fatoora” means for this threshold
Crossing SAR 187,500 does not mean “print a nicer invoice.” Phase 2 means:
- An EGS unit (device/branch solution) registered with Fatoora
- CSID certificates (compliance then production)
- Clearance for B2B and reporting for B2C
Details: Wave 25 overview · 1 February 2027 · EGS units
What to do this week
- Pull VAT-subject revenue for 2022, 2023, 2024, and 2025.
- Log in to Fatoora and read your wave / integration date.
- If you are in Wave 25, pick an integration path before Q4 2026 — small-business guide or Esnad API.
Skip the boilerplate. Use Esnad API.
The fastest way to integrate ZATCA compliance into any system.