Can taxpayers report invoices not cleared from ZATCA in their VAT return reports?
Taxpayers must determine VAT liability based on their transactions. Technical failure or error on XML does not invalidate the transaction. VAT becomes due irrespective of whether a valid invoice was issued or not. There are different penalties relating to Non payment of VAT and Not issuing valid Tax Invoices. These two are separate events. Therefore, sometimes there will be scenario where taxpayers may have to include even the rejected invoices in VAT returns as the VAT becomes due for the tax period.