In instances where a sale is processed with a service charge and later the same refunded without returning the original service charge, but instead applying an additional service charge for the refund process. In this case, the VAT payable remains a payable value during the refund, rather than transitioning to a receivable. We seek guidance on how to accurately represent this scenario within a single XML file because we are having a single Credit Note number for this refund. Our attempts to submit an XML file with a negative TaxAmount have been unsuccessful, resulting in the error message detailed below.
For reference, we have provided a sample value breakdown of our case. Additionally, we have attached XML files for both scenarios from the simulation portal, where the sale XML was successfully processed, but the refund XML failed with the aforementioned error message.
Sample Data
| Particulars | Invoice# | Zero Rated | Taxable Service Charge | Taxable Service Charge on Refund | VAT | Invoice/Credit Note Amount |
|---|---|---|---|---|---|---|
| Sale | INV0001 | 1000 | 100 | 0 | 15 | 1115 |
| Refund | CR00001 | 1000 | 0 | -100 | -15 | 885 |
Error Message
VAT category tax amount (BT-117) = VAT category taxable amount (BT-116) x
(VAT category rate (BT-119) / 100), rounded to two decimals.
The VAT category tax amount (BT-117) in a VAT breakdown (BG-23) where
VAT category code (BT-118) is “Standard rated” shall equal the VAT
category taxable amount (BT-116) multiplied by the VAT category rate (BT-119).
All the document amounts and quantities must be positive.