Clarify the date of issuance of tax invoices and share them with the Fatoora platform

XML and business rules
1

Dear ZATCA Team,

I hope this message finds you well.

I am writing to request clarification on the date of issuance of tax invoices for reporting purposes, particularly in cases where there is a delay between the creation of the invoice and the customer’s payment.

We currently issue and share only paid invoices with the Fatoora platform. In our system, invoices are generated first, and customer payments may occur at a later date. For instance, an invoice might be generated on 07-17-2024, but the customer’s payment may not be processed until 08-07-2024. This results in a difference of 22 days between the invoice issuance date in our system and the customer’s payment date.

According to the executive regulations, tax invoices must be issued and submitted to the Fatoora platform no later than 15 days from the end of the month in which the supply occurred. In contrast, simplified tax invoices must be shared with the Fatoora platform within 24 hours.

Given this, could you please confirm whether the date for reporting to ZATCA should be the date the invoice was created in our system or the date the customer made the payment?

We would greatly appreciate your guidance on this matter to ensure we remain compliant with the regulations.

Best regards,
Zaid

2

Dear @Zaid,
Please note that in Phase 2, B2B invoices can be shared with customer only after Clearance of XML by ZATCA. Article 53 of VAT Regulations do specify timeline but you need do the Clearance before sharing it with customer.

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Dear @Ankit_Tiwari

Ok, no disagreement

The problem with us is that there are invoices issued before the customer pays and the customer may be delayed for a long time in the payment process.
Do we share the invoices paid only to Zatca on the payment date so that the invoice issuance date is on the payment date, so we share it.

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Dear @Zaid, please refer language of Article 53(1) of VAT Regulations carefully. You have to issue Tax Invoice within 15 days of month following the month of supply for B2B and immediately upon supply for B2C.

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