Clarification on VAT Representation in QR Code for Invoice with Prepayments

QR code
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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

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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.

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Dear @Ankit.K.Tiwari,

Thank you for the clarification regarding the QR Code specifications and the treatment of prepayments.

To ensure accurate data representation and compliance with the e-invoicing requirements, could you please confirm whether it is acceptable to issue a credit note for the advance payment deduction value? The goal is to reflect the net transaction accurately in both the XML structure and the QR code scan results.

We want to ensure that our documentation aligns with ZATCA’s guidelines and avoids any potential misrepresentation of the VAT amount.

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Dear @Abdulazizsaad,
When you scan the QR Code using ZATCA’s Mobile App, the result will display only the Invoice Total Amount (incl VAT) from the field BT-115 which is net of Advance Payment adjustment (BT-113). VAT Amount field is not displayed on ZATCA’s Mobile App.

You can follow the steps explained in Section 8 of Detailed Technical Guidelines to understand the usage of UBL tags for advance payment adjustments.

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Dears ,

After dedicating the adv. payment the QR should comply to the total invoice amount ( before deducting the advance payment) or comply to the Net amount ( after deducting the adv.payment) please clarify and confirm this information .

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@Alhosaieny Tag number 4 of the QR Code (Total Amt incl VAT) should read the value from BT-115 Amount Due for payment which is arrived after adjusting advance payment (BT-113 cbc:PrepaidAmount).