Clarification on VAT Representation in QR Code for Invoice with Prepayments

QR code
1

Our company received a prepayment from a customer for a taxable supply, and VAT on the prepayment was accounted for and paid at the time of receipt. Subsequently, we issued an invoice to the customer for the full transaction value, reflecting the total supply amount and VAT.

Questions:

  1. Should the QR code on the issued invoice reflect the total VAT amount for the entire supply (including the prepayment portion)?
  2. Alternatively, should the QR code reflect only the remaining VAT due after the prepayment adjustment?

Please clarify the correct practice to avoid any potential misrepresentation of VAT in the QR code

2

Dear @Abdulazizsaad , QR Code specifications were issued back in 2021 when there were no XML tags for prepayment adjustments. Tag 5 of QR Code will read from BT-110 which is Invoice total VAT amount before prepayment adjustments. However, this tag is no longer displayed on Scan Result when using ZATCA’s Official Mobile App.

Tag 4 (Invoice Total Amount including VAT is read from BT-115 which is net of advance payment adjustment). Only this field is displayed in scan result when using ZATCA’s official Mobile App.

1 Like