What is the SAR 187,500 threshold for ZATCA Phase 2?

The SAR 187,500 threshold is the revenue criterion ZATCA has used for selecting taxpayers for Wave 25 of Phase 2 e-invoicing.

For Wave 25, ZATCA stated that the targeted group includes taxpayers whose revenues subject to VAT exceeded SAR 187,500 during 2022, 2023, 2024, or 2025.

It is important to understand that this figure is specifically the Wave 25 selection threshold. It should not be confused with the mandatory VAT registration threshold or treated as a general ZATCA Phase 2 threshold that applies to every wave.

For example, ZATCA used different revenue thresholds for previous waves. Wave 21 used SAR 1.25 million, Wave 22 used SAR 1 million, while Wave 25 uses SAR 187,500. This shows that the threshold can change from one wave to another.

Businesses should therefore always check the specific ZATCA announcement for their wave instead of assuming that one revenue threshold applies to all Phase 2 taxpayers.

Key points

• SAR 187,500 is the Wave 25 selection threshold.
• It refers to VAT-subject revenue, not simply total business revenue.
• The relevant years for Wave 25 are 2022 to 2025.
• The threshold is specific to Wave 25.
• Previous ZATCA waves used different revenue thresholds.