ZATCA Wave 25 for Saudi Hotels: 2027 Compliance Guide

ZATCA Wave 25 for Saudi Hotels: 2027 Compliance Guide

ZATCA Wave 25 for Hotels: The 2027 Compliance Checklist Every Saudi Hotel and Furnished-Apartment Owner Needs (Under 90 Days Left)

If you run a hotel, a boutique property or a furnished-apartment building in Saudi Arabia, February 1, 2027 is the most important date on your calendar. That is the deadline for ZATCA Wave 25, the largest expansion yet of the Phase 2 e-invoicing mandate. It reaches far down into the market, to properties that until now assumed e-invoicing integration was "something for the big chains".

This guide explains in plain language what Wave 25 means for hospitality businesses, what ZATCA Phase 2 e-invoicing requires from your front desk and accounts, and how it fits with the other obligations every property already carries: NTMP reporting, the Shomoos system, Ministry of Tourism licensing and Saudisation. You will finish with a practical checklist and an action plan you can start this week.

Quick answer: ZATCA Wave 25 requires every VAT-registered business in Saudi Arabia whose VAT-subject revenue exceeded SAR 187,500 in any year from 2022 to 2025 to integrate its e-invoicing system with ZATCA's Fatoora platform by February 1, 2027. For hotels and furnished apartments, this means every guest invoice must be generated in an approved electronic format, cryptographically stamped and reported to or cleared by ZATCA, directly from the system that issues it.

What Is ZATCA Wave 25 and Who Must Comply?

Saudi Arabia introduced e-invoicing in two phases. Phase 1, the "Generation Phase", started on December 4, 2021 and required businesses to issue electronic invoices with a QR code. Phase 2, the "Integration Phase", goes further: your invoicing system must connect to ZATCA's central Fatoora platform. ZATCA rolls Phase 2 out in waves, starting with the largest taxpayers and moving steadily down the revenue scale.

On July 24, 2026, ZATCA announced the selection criteria for Wave 25. The threshold was cut in half compared with Wave 24, which is why so many smaller hospitality businesses are now in scope for the first time.

ZATCA Wave 25 key facts at a glance

Item Detail
AnnouncedJuly 24, 2026
Revenue thresholdVAT-subject revenue above SAR 187,500 in 2022, 2023, 2024 or 2025
Previous threshold (Wave 24)SAR 375,000, with a deadline of June 30, 2026
Integration deadlineFebruary 1, 2027
PlatformZATCA Fatoora (e-invoicing integration platform)
NotificationZATCA notifies targeted taxpayers at least six months before their integration date

Why small hotels and furnished apartments are hit hardest

SAR 187,500 a year works out to roughly SAR 15,600 a month. A building with eight furnished units at SAR 250 a night and 60% occupancy passes that figure easily. A 20-room hotel in Riyadh, Jeddah, Khobar or Abha passes it in a few months. In practice, almost every licensed, VAT-registered hospitality business in the Kingdom that has not yet integrated is now in Wave 25, and many of them still issue invoices from spreadsheets, basic accounting tools or front-desk systems that were never built to talk to Fatoora.

Notice: Wave 25 counts revenue from any single year between 2022 and 2025. A property that had one strong year, for example during a busy season or a major event, can be in scope even if its revenue has since fallen. Check the Fatoora portal and your ZATCA notifications rather than relying on this year's figures alone.

What ZATCA Phase 2 E-Invoicing Actually Requires From a Hotel

Phase 2 is not just "sending a PDF to the tax authority". It changes how every invoice is created, stored and shared. For a hotel or furnished-apartment operator, the core requirements are:

  • An approved e-invoicing solution that generates invoices in the structured XML format ZATCA specifies, not handwritten, Word or Excel invoices.
  • Device onboarding through the Fatoora portal, where each invoicing system receives its own cryptographic stamp identifier (CSID).
  • A cryptographic stamp and QR code on every invoice, linked to the previous invoice through a hash chain so that invoices cannot be silently changed or deleted.
  • Clearance of standard (B2B) tax invoices by ZATCA before they are issued to a business customer.
  • Reporting of simplified (B2C) invoices to ZATCA within 24 hours of issue.
  • Credit and debit notes for every correction, because a cleared or reported invoice cannot simply be edited.

Simplified vs standard invoices in a hotel

Most hotel guests are individuals, so most of your invoices will be simplified tax invoices that are reported within 24 hours. Corporate accounts, government bookings, travel agencies and event clients usually need standard tax invoices with the buyer's VAT number, and those must be cleared in real time. A hotel PMS has to handle both on the same folio, including split bills, deposits, room moves, extensions, cancellations and refunds. This is exactly where generic invoicing tools tend to break.

Alert: what non-compliance can cost. Wave 24 enforcement has been in effect since July 1, 2026, and tax trackers report e-invoicing fines of SAR 5,000 to SAR 50,000 per violation after an initial warning. Beyond the fines, a hotel that cannot issue compliant invoices risks losing corporate and government clients, who need valid tax invoices to recover their VAT.

The 2027 Hotel Compliance Checklist in Saudi Arabia (Beyond ZATCA)

ZATCA is the most urgent deadline, but it is not the only obligation. Hotel compliance in Saudi Arabia involves several government systems that all depend on the same reservation and guest data. Treat them as one project, not five separate problems.

Obligation Authority What to check Timing
Phase 2 e-invoicing (Fatoora)ZATCAApproved solution, device onboarded, B2C reporting and B2B clearance workingBy February 1, 2027
NTMP reportingMinistry of TourismReservations, occupancy and financial data sent automatically and accuratelyOngoing, continuous
Shomoos guest registrationMinistry of InteriorEvery guest registered at check-in with correct ID detailsEvery check-in
Licensing and classificationMinistry of TourismValid license; unlicensed properties are removed from booking platformsOngoing
20-hour minimum stayMinistry of TourismCheck-in and check-out times give guests at least 20 hoursIn effect since 2025
Saudisation in tourismMHRSD and Ministry of TourismLocalisation ratios per role, accurate employee recordsPhase 2 from March 1, 2027

NTMP integration: the Ministry sees your numbers

The National Tourism Monitoring Platform (NTMP) requires hotels to share reservation, occupancy and financial information with the Ministry of Tourism. When those figures come from a different system than your ZATCA invoices, they will not match, and mismatches are exactly what auditors look for. The safest setup is a single PMS that sends both from the same folio.

The Shomoos system: every guest, every time

Established by Royal Decree in 2014, Shomoos requires hotels to share guest identity information with the National Information Center at the Ministry of Interior. Typing passport, Iqama and national ID numbers by hand during a busy check-in is slow and error-prone, and errors here are a security matter, not just an administrative one.

Saudisation: the next deadline after ZATCA

The tourism-sector Saudisation resolution moves into Phase 2 on March 1, 2027, and Phase 3 follows on January 1, 2028. Clean HR data on roles, nationality and attendance makes it far easier to prove compliance and plan hiring.

How to Prepare for ZATCA Wave 25: An 82-Day Action Plan for Hotels

From mid-November 2026, you have roughly 12 weeks. That is enough time if you start now and work in this order:

  • Weeks 1–2: Confirm your status. Check your VAT-subject revenue for 2022 to 2025, look for the ZATCA notification and log in to the Fatoora portal. List every place your property issues invoices: front desk, restaurant, events, laundry and online bookings.
  • Weeks 3–5: Choose one integrated system. Pick a hotel PMS with built-in ZATCA e-invoicing rather than adding a separate invoicing tool next to your front desk. Confirm it also handles NTMP and Shomoos.
  • Weeks 6–8: Configure and migrate. Set up VAT, municipality and tourism fees, corporate customer VAT numbers, invoice numbering and opening balances. Train front-desk and finance staff.
  • Weeks 9–10: Onboard and test. Generate your CSID through Fatoora, then test B2C invoices, B2B invoices, credit notes, deposits, split folios and refunds.
  • Weeks 11–12: Go live with a buffer. Run live before the deadline, not on it, so there is time to fix any rejected invoices. Keep a daily check of reporting status for the first month.

Tip: do not wait for the last week of January

Late January is high season in many Saudi destinations, and software providers will be at full capacity as thousands of businesses rush to integrate. Aim to be live by mid-January 2027, so the deadline passes quietly while your team focuses on guests.

Features and Benefits of a ZATCA-Compliant Hotel Management System

A compliant hotel PMS in Saudi Arabia should do more than produce a valid invoice. It should remove manual work across every government system at once. Fandaqah PMS, built specifically for Saudi hotels and furnished apartments, brings these capabilities together:

  • ZATCA-ready invoices from the folio: invoices are produced where the charge is posted, so there is no copying between systems.
  • NTMP Integration and NTMP Financial: every stay, payment and occupancy figure is reported automatically, and the general ledger stays in step with the Ministry of Tourism's financial platform.
  • Shomoos Wallet: prepaid Shomoos transaction credits bought with Mada and used automatically as guests check in.
  • Passport and ID scanner: guest details filled straight from a passport, visa, Saudi national ID or Iqama, with no retyping.
  • Night Audit with business dates: room revenue is posted each night with VAT, accommodation and tourism tax, and a closed day can never be quietly reopened.
  • Full double-entry accounting: sales, payments, payroll and stock movements post to one ledger, ready for auditors.
  • Online payments that land on the folio: HyperPay (Mada, Visa, Mastercard, Apple Pay), Tabby and Tamara payments are recorded automatically as receipts.
  • HRM for Saudisation: employee files, shifts, attendance, leave and payroll in the same platform.
  • Arabic and English, Hijri and Gregorian: the whole system works the way Saudi teams and authorities work.

The benefit is simple: one source of truth. When ZATCA, NTMP and your own accounts all read from the same folio, the numbers match automatically, and an audit becomes a report rather than a crisis.

Practical Use Cases: How Wave 25 Plays Out Across Saudi Arabia

The following scenarios reflect common situations among Saudi hospitality businesses preparing for Wave 25.

A 35-room business hotel in Riyadh

Around a third of its revenue comes from corporate accounts that need standard tax invoices with VAT numbers. Under Phase 2, each of those invoices must be cleared by ZATCA before it reaches the client. With an integrated PMS, the front desk issues a cleared invoice at check-out in seconds, and finance no longer re-types corporate invoices at month end.

Furnished apartments in Khobar and Dammam

An owner manages three buildings with monthly and weekly stays. Long stays create recurring invoices, deposits and partial payments, each of which must be reported within 24 hours. Automating this from the reservation, and taking deposits through payment links that post straight to the folio, removes the most common source of errors.

Pilgrim accommodation in Makkah and Madinah

During Umrah peaks, a property may check in hundreds of guests a day, many with passports and visas. Passport scanning feeds Shomoos accurately, while group invoices for travel agents go through B2B clearance. Speed at the desk and accuracy in compliance stop competing with each other.

A seasonal resort in AlUla or Abha

One strong season in 2024 or 2025 is enough to place the resort in Wave 25, even if revenue is lower this year. Restaurant, spa and event charges must all appear on compliant invoices, which is far easier when the point of sale and the PMS post to the same folio.

Comparison: Which Compliance Approach Fits Your Hotel?

Most hospitality businesses choose between three options. Here is how they compare against the obligations above.

Criteria Spreadsheets and manual invoices Generic accounting software Integrated hotel PMS (e.g. Fandaqah)
ZATCA Phase 2 compliantNoOften yesYes, from the folio
Understands folios, deposits, split billsNoLimitedYes
NTMP reportingManualNot includedAutomatic
Shomoos and ID scanningManualNot includedBuilt in
Numbers match across systemsRarelyNeeds reconciliationOne source of truth
Risk of penaltiesHighMediumLow
"Compliance in Saudi hospitality is no longer a once-a-year task for the accountant. It happens at every check-in, every payment and every invoice, so it has to live inside the system your front desk already uses."

Future Trends: Hotel Compliance and Saudi Vision 2030

Wave 25 is part of a bigger story. Under Saudi Vision 2030, tourism has become one of the Kingdom's fastest-growing sectors. The Ministry of Tourism reported about 123 million domestic and inbound tourists in 2025, roughly 6% more than the year before, and more than 6,120 licensed accommodation facilities offering around 616,000 rooms in Q1 2026. As the sector grows, the government is building a fully digital view of it.

  • Lower thresholds, wider reach: each e-invoicing wave has brought in smaller businesses, and future waves will continue that direction.
  • Connected government data: tax, tourism and security data are increasingly cross-checked, so consistency across systems will matter more than ever.
  • Licensing enforcement: booking platforms have been instructed to remove unlicensed properties, making compliance a condition for selling rooms online.
  • Digital payments: Mada, Apple Pay and instalment options such as Tabby and Tamara are now standard guest expectations, and every payment needs a matching compliant record.
  • Workforce localisation: Saudisation phases in 2027 and 2028 will make reliable HR data a compliance requirement in its own right.

Advice for owners: choose a system that will handle the next rule, not just this one. A platform that already connects ZATCA, NTMP, Shomoos, payments and HR can adapt to new requirements with an update, while a patchwork of tools needs a new project every time regulations change.

Frequently Asked Questions About ZATCA Wave 25 for Hotels

What is the ZATCA Wave 25 deadline for hotels?

Hotels, furnished apartments and other hospitality businesses in Wave 25 must integrate their e-invoicing systems with ZATCA's Fatoora platform by February 1, 2027.

Does ZATCA Wave 25 apply to furnished apartments in Saudi Arabia?

Yes, if the business is VAT-registered and its VAT-subject revenue exceeded SAR 187,500 in any year from 2022 to 2025. The rule is based on revenue, not property type, so furnished apartments are treated like any other taxpayer.

How do I know if my hotel is in Wave 25?

Check your VAT-subject revenue for each year from 2022 to 2025 and look for ZATCA's notification, which is sent at least six months before the integration date. You can also confirm your status through the Fatoora portal or with your tax adviser.

How do I integrate my hotel PMS with ZATCA Fatoora?

Use a PMS with built-in ZATCA e-invoicing, onboard it on the Fatoora portal to receive its cryptographic stamp identifier (CSID), configure your VAT and customer data, then test simplified invoices, standard invoices and credit notes before going live.

What are the penalties for not complying with ZATCA e-invoicing?

Reported fines range from SAR 5,000 to SAR 50,000 per violation, usually after an initial warning. Non-compliant invoices can also prevent corporate and government clients from recovering VAT, which can cost you their business.

Is ZATCA compliance enough to operate a hotel legally in Saudi Arabia?

No. Hotels also need a valid Ministry of Tourism license, NTMP reporting, Shomoos guest registration, the 20-hour minimum stay rule and Saudisation compliance. The most efficient approach is one PMS that handles all of them from the same data.

Can I still issue invoices from Excel after February 1, 2027?

No. Once your integration date passes, invoices must be generated by a compliant e-invoicing solution connected to Fatoora. Spreadsheet or manually typed invoices will not meet Phase 2 requirements.

This article is general guidance and not tax or legal advice. Always confirm your obligations with ZATCA, the Ministry of Tourism or a qualified adviser.

Conclusion: Turn the Wave 25 Deadline Into an Upgrade

ZATCA Wave 25 brings almost every VAT-registered hotel and furnished-apartment business in Saudi Arabia into Phase 2 e-invoicing, with a firm deadline of February 1, 2027. The threshold of SAR 187,500 is low, the look-back covers four years, and the technical requirements go well beyond adding a QR code.

The smartest response is not a quick patch for one regulation. It is moving your property onto a single system where invoices, NTMP reporting, Shomoos registration, payments, accounting and HR all come from the same data. Start with your revenue check this week, choose your system within a month, and plan to be live by mid-January. Your guests will notice faster check-ins, and your finance team will notice that the numbers finally agree.

Get Your Hotel ZATCA-Ready Before February 1, 2027

Fandaqah PMS brings ZATCA e-invoicing, NTMP, Shomoos, online payments, accounting and HR into one Arabic and English platform built for Saudi hotels and furnished apartments. Book a free compliance demo and see your own workflow running before the deadline.

Book your free demo at Fandaqah.com

Tags

  • ZATCA Wave 25
  • ZATCA Phase 2 e-invoicing
  • Fatoora integration
  • Hotel compliance Saudi Arabia
  • Furnished apartments
  • NTMP integration
  • Shomoos system
  • Hotel PMS Saudi Arabia
  • Saudisation tourism
  • Saudi Vision 2030
  • Fandaqah
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