POS Software in Saudi Arabia: ZATCA E-Invoicing Wave 25 and What Small Shops Must Do

If you run a baqala, a mini-market or a trading shop in Riyadh, Jeddah or Dammam, e-invoicing is no longer something that only big companies worry about. ZATCA has kept lowering the threshold, and the next wave reaches quite small businesses. Here is what it means at the counter.

Where e-invoicing stands now

Saudi VAT is 15%. ZATCA's FATOORA programme started in December 2021 with Phase 1, when businesses had to generate invoices electronically. Phase 2, where your system connects directly to ZATCA, has been rolled out in waves since January 2023, each wave reaching smaller businesses.

SAR 187,500 a year works out to roughly SAR 15,600 a month. Plenty of small grocery and hardware shops cross that. If you do, ZATCA should notify you, but do not wait for the letter to start preparing.

What a simplified tax invoice must show

Sales to consumers use a simplified tax invoice. According to ZATCA's guidelines it must show:

• The date of issue
• Your name, address and VAT number
• A description of the goods
• The total amount
• The VAT amount, or a clear note that the price includes 15% VAT
• A QR code, and under Phase 2 the cryptographic stamp generated by compliant software

The invoice must be in Arabic. You can print English alongside it, which helps with staff and customers, but the Arabic text is the one that counts.

Penalties worth knowing

Advisers summarising ZATCA's penalty table report fines of SAR 5,000 to 50,000 for not issuing or not storing e-invoices, and SAR 10,000 to 50,000 for changing or deleting an issued e-invoice. A missing QR code starts with a warning. The message is simple: never edit a bill after it is issued. Cancel it properly and issue a new one.

What to ask a POS vendor in Saudi Arabia

• Is your software already onboarded with ZATCA for Phase 2, and can you show me?
• Does it print Arabic and English on the same receipt?
• How are returns and cancellations handled without editing the original invoice?
• Can it work offline and sync when the connection is back?
• Does it support Mada, cards and cash in the same day-end report?

A practical Wave 25 checklist

• Check your VAT-liable revenue for each year from 2022 to 2025 against SAR 187,500
• Make sure every counter issues invoices from compliant software, not handwritten bills
• Confirm your receipts print Arabic, your VAT number and a QR code
• Set a rule that issued invoices are never edited, only cancelled with a credit note
• Test the connection with your vendor well before 1 February 2027
• Keep six years of records in a form you can retrieve quickly

Common mistakes we see

The most common one is waiting for the ZATCA notification before choosing software. Onboarding takes time, and the last weeks before a deadline are when vendors are busiest. The second is editing a bill after printing it to fix a price or a quantity. Under e-invoicing that is a violation, so staff need a simple, trained way to issue a return or credit note instead. The third is running two systems, one for VAT and one for real stock, which doubles the work and guarantees the numbers never match.

Where Devsio ERP fits

Devsio ERP covers the day-to-day side of the shop: fast billing, stock, customer and supplier ledgers, and accounts, with bills on WhatsApp and AI-assisted price updates. ZATCA integration is country-specific, so message us with your business details first. We will tell you in writing exactly what is covered for Saudi Arabia before you commit.

Frequently asked questions

What is ZATCA Wave 25?

Wave 25 is the group of businesses with VAT-liable revenue above SAR 187,500 in any year from 2022 to 2025. They must connect their invoicing systems to ZATCA's FATOORA platform by 1 February 2027.

Do Saudi invoices have to be in Arabic?

Yes. ZATCA requires invoices to be in Arabic. Another language can be added alongside it.

Can I edit an invoice after issuing it in Saudi Arabia?

No. Changing or deleting an issued e-invoice is a violation with fines reported between SAR 10,000 and 50,000. Issue a credit or debit note instead.

Sources

Checked on 17 October 2026. Tax rules change, so confirm the latest position with the official source or your tax adviser.

1. ZATCA: Wave 25 e-invoicing announcement
2. ZATCA: Guideline for tax invoicing and records under VAT
3. ZATCA: E-invoicing simplified guideline
4. Grant Thornton: e-invoicing penalty alert