Clarification on issuing Tax Invoice (15% VAT) against cleared Advance Invoice (0% VAT)

General
1

We would like to seek clarification regarding the treatment of Advance Invoices and subsequent Tax Invoices

Scenario:

  • An Advance Invoice was generated with 0% VAT and has been successfully cleared with ZATCA.

  • Later, when trying to issue a Tax Invoice with 15% VAT against that Advance Invoice, the system is not allowing to proceed.

Can you provide anything on this why this is not posssible?

2

@sameer what is the exact error code that you receive?

If you issue advance payment invoice with zero rated VAT Category Code while actual supply is towards a standard rated good / service, this will result in under-reporting of VAT at the time of receiving advance.

3

Dear @Ankit.K.Tiwari ,

Thanks for your response .

we are getting the error related to Taxable Amount cannot be negative please check Prepaid amount is greater than Taxable Amount.

could you please confirm us whether we can generate the advance invoice and Tax invoice against the Advance Invoice with 2 different VAT rates.

4

@sameer SDK already contains sample XMLs with different VAT rates in advancement payment adjustment scenarios (5% rate at the time of receiving advance and 15% rate in final invoice from which advance payment is adjusted).