Finance and tax teams in Saudi Arabia and the United Arab Emirates are dealing with two e-invoicing compliance timelines at the same time. In Saudi Arabia, ZATCA Phase 2 integration is being rolled out in waves across the taxpayer base, pulling thousands of businesses into a mandatory clearance system. In the UAE, the Ministry of Finance published detailed implementation guidance in February 2026 and confirmed the phased go-live calendar.
Two Mandates, One Deadline Window: What ZATCA Phase 2 and the UAE E-Invoice Mandate Mean for Finance Teams in the Gulf
Businesses operating across Saudi Arabia and the UAE now have two major e-invoicing compliance deadlines to prepare for. Delaying ERP readiness could result in invoice processing failures and regulatory non-compliance.
Finance and tax teams in Saudi Arabia and the United Arab Emirates are dealing with two e-invoicing compliance timelines at the same time. In Saudi Arabia, ZATCA Phase 2 integration is being rolled out in waves across the taxpayer base, pulling thousands of businesses into a mandatory clearance system. In the UAE, the Ministry of Finance published detailed implementation guidance in February 2026 and confirmed the phased go-live calendar. For businesses operating in both markets, the compliance picture has moved from discussion to execution -and the time to act is now.
Saudi Arabia: ZATCA Phase 2 -How the Wave System Works
The e-invoicing rollout in Saudi Arabia operates in two phases. Phase 1 started in December 2021 and required all VAT-registered taxpayers to generate and store electronic invoices. Phase 2 requires taxpayer systems to connect to ZATCA’s infrastructure for real-time clearance and reporting of invoices.
Phase 2 is not a single national deadline. It is rolled out in targeted waves by taxpayer group. ZATCA notifies each wave’s taxpayers at least six months in advance. Wave 24 -covering businesses with annual revenue of SAR 375,000 and above -had a deadline of June 30, 2026. Wave 25 and beyond continue this rollout.
What Phase 2 integration actually requires is not just generating an XML invoice. It means your ERP or billing system must connect to a ZATCA-certified solution that submits invoices to ZATCA’s Fatoora platform for clearance or reporting, receives a clearance stamp, and returns the compliant invoice to the buyer -all within the defined technical specifications including the UBL 2.1 XML format and cryptographic stamping requirements.
For mid-sized manufacturers, distributors, and service businesses in Saudi Arabia, the key questions are: which wave applies to your revenue level, whether your ERP can generate ZATCA-compliant XML, and whether your integration partner is a ZATCA-certified solution provider.
UAE: The Peppol-Based E-Invoice Mandate -What Is Actually Required
The UAE’s e-invoicing mandate follows a Peppol-based five-corner architecture -structurally different from a PDF digitisation requirement or a simple live reporting model. Invoices must be issued in structured XML format under the PINT AE (Peppol International Invoice -UAE) schema and transmitted through a Ministry of Finance-approved Accredited Service Provider.
The phased go-live schedule: pilot cohort goes live July 1, 2026; large businesses (revenue ≥ AED 50 million) must appoint an ASP by July 31, 2026 and go live from January 1, 2027; SMEs (revenue < AED 50 million) must appoint an ASP by March 31, 2027 and go live from July 1, 2027; government entities follow from October 1, 2027.
The PINT AE schema requires 51 mandatory data fields for standard tax invoices -a data mapping exercise that takes time, particularly for multi-entity or multi-currency operations. The mandate applies to all businesses transacting in the UAE regardless of VAT registration status, with specific exclusions defined by regulation. Participation is based on a Tax Identification Number.
Saudi Arabia vs UAE -Quick Reference Comparison
Saudi Arabia (ZATCA) UAE (PINT AE)
Framework ZATCA Fatoora clearance Peppol five-corner model
Format UBL 2.1 XML PINT AE XML schema
Intermediary ZATCA-certified solution Accredited Service Provider (ASP)
Rollout model Revenue-based waves Revenue-based cohorts
Current deadline Wave 24: June 30, 2026 Large biz ASP: July 31, 2026
Applies to VAT-registered taxpayers All businesses transacting in UAE
What Both Mandates Have in Common -and Why Acting Now Matters
Both ZATCA Phase 2 and the UAE PINT AE mandate share the same business risk: if your invoice system cannot produce the right output and route it to the right place before your applicable deadline, your invoices will not be legally valid. That means delayed payments, disrupted order processing, and potential regulatory penalties -consequences that fall on the finance team to manage under time pressure.
The gap most mid-market businesses are discovering is not in the ERP platform’s capability. It is in the configuration and integration layer between the ERP and the compliance infrastructure. Many businesses are using their ERP for invoicing today without having configured it for structured e-invoice output -and getting from here to compliant requires a specific implementation project, not a software update.
Greytrix Middle East, as a Sage ERP implementation partner across the UAE and Saudi Arabia, works with businesses to configure their Sage environment for both mandates -covering XML output formatting, ASP or ZATCA-certified solution integration, and the free zone and multi-entity configurations Gulf operations commonly require.
What Finance Teams Should Be Doing Right Now
✓ Confirm your ZATCA Phase 2 wave notification date and whether your revenue threshold places you in a current or upcoming wave.
✓ Assess whether your current ERP produces ZATCA-compliant UBL 2.1 XML for Saudi Arabia invoices.
✓ For UAE operations: identify whether you are in the large business or SME cohort and confirm your ASP appointment deadline.
✓ Map your existing invoice data fields against the PINT AE schema’s 51 mandatory fields.
✓ Engage your ERP implementation partner to confirm integration readiness with a certified solution well before your go-live date.
Don’t let ERP configuration be the reason your invoices fail compliance checks. Talk to our team before your deadline arrives –Contact Greytrix Middle East
FAQs
ZATCA notifies each taxpayer group at least six months before their integration deadline. You can also check the official ZATCA rollout phases page to see how waves are grouped by revenue threshold.
No. The mandate applies to all businesses transacting in the UAE regardless of VAT registration status, unless your activity falls under a specific exclusion. Participation is based on a Tax Identification Number, not VAT registration.
PINT AE stands for Peppol International Invoice -UAE. It is the structured XML schema mandated by the UAE Ministry of Finance, specifying the exact mandatory data fields that must be present. PDFs do not satisfy this requirement.
Sage has the capability -the question is configuration. Producing ZATCA-compliant XML and connecting to UAE ASP infrastructure requires specific implementation work. That is what Greytrix Middle East does. Contact our team to discuss your setup.
An ASP is a Ministry of Finance-approved intermediary that validates invoice data against the PINT AE schema and transmits it through the UAE e-invoicing network. Businesses must formally appoint an ASP before their applicable deadline.
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