Hi, I have a query regarding an invoice which was sent to zatca and later cancelled in our system due to some error, will it be cancelled in zatca system as well or we have to pay vat for this invoice. can you please confirm.
Please note, Electronic Status for that invoice is also showing “Cancelled”
thanks
@hasan as per Article 54 of KSA VAT Regulations, you must issue a Credit Note for cancellation of a taxable supply for which a Tax Invoice was issued earlier. You must generate a Credit Note and send it to ZATCA. It is a prohibited functionality to delete an invoice and subject to penalties. Only way to reverse a transaction is by passing Credit Note.