Saudi Arabia’s e-invoicing regime is fully live, requiring all VAT‑registered businesses to issue invoices through a compliant Electronic Generation Solution (EGS) connected to the Fatoora platform. In 2026, two SME‑scale integration waves—Wave 23 and Wave 24—will bring additional businesses into the real‑time clearance system, with deadlines of 31 March 2026 and 30 June 2026 respectively, while the penalty‑waiver initiative expires on 30 June 2026.

Saudi Arabia has approved amendments to the GCC Unified VAT Agreement, formalising a 5% minimum VAT rate across the Gulf and confirming Saudi Arabia's 15% and Bahrain's 10% rates. The reforms introduce a first‑port‑of‑entry model for import VAT, a VAT settlement mechanism for onward movements, and enhanced information sharing between GCC tax authorities.

Saudi Arabia has rolled out a comprehensive e‑invoicing mandate led by ZATCA, requiring all companies to issue and transmit electronic invoices via the Fatoora platform. The phased implementation includes mandatory clearance for B2B/B2G and e‑reporting for B2C, with progressive waves based on turnover thresholds. As of March 31, 2026, companies with annual turnover above SAR 750 000 must comply, with further thresholds set for June 2026.

Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) has issued amendments to the VAT Implementing Regulations that clarify the responsibilities of electronic marketplaces and e-commerce platforms. The changes define when a marketplace is deemed to facilitate a supply and therefore liable for VAT, and introduce phased effective dates for compliance. Businesses operating in the Kingdom should review their operating models and contractual arrangements to ensure alignment with the updated framework.

ZATCA continues expanding Phase 2 e-invoicing integration throughout 2025, with Wave 24 covering businesses with turnover above SAR 375,000. Non-compliance penalties range from SAR 5,000 to SAR 50,000.