Do I still have to integrate if my revenue has since dropped below the threshold?

Generally, a later decrease in revenue does not by itself mean that a taxpayer selected for a ZATCA Phase 2 wave can ignore the integration requirement.

ZATCA's wave-selection criteria are based on the specific historical revenue periods identified in each wave announcement. For Wave 25, for example, taxpayers are targeted if their VAT-subject revenue exceeded SAR 187,500 during 2022, 2023, 2024, or 2025.

This means a business could have qualified based on revenue in one of those historical years and subsequently experience lower revenue. The later reduction does not automatically change the fact that the business was selected based on the published wave criteria.

Businesses that have received a ZATCA notification should therefore not assume that a recent decline in revenue removes the integration obligation. If there is a specific change in the business's tax status or circumstances that could affect its obligations, the business should verify the position with ZATCA or a qualified Saudi tax adviser.

Key points

• Wave selection is based on the specified historical revenue periods.
• A later decline in revenue does not automatically cancel the integration requirement.
• Wave 25 looks at VAT-subject revenue during 2022 to 2025.
• Businesses that have received a ZATCA notification should continue preparing for integration.
• Any change in tax status should be assessed separately with reference to the applicable ZATCA rules.