Dears ,
Can you please tell me what is the procedure of Free of Charge Invoice . How ZATCA will generate the XML file .
@jamal9900
Please refer Article 15 of VAT Regulations to determine if free of charge supplies attract “Nominal Supplies” or “Deemed Supplies” provisions.
If it is not a nominal supply, then unit price can be provided as zero.
If the supply attract Nominal Supply provisions, then Unit Price should be provided based on fair market value and XML should be generated with taxable amount just like any regular invoice. Only change is in the Invoice Type Transaction Code where 4th position of the NNPNESB code should be 1 to indicate that it is a nominal supply invoice. Nominal Supply invoice need not be shared with customer.