How to Issue a Credit Note for an Old 5% VAT Invoice?

Clearance and Reporting
1

Hi all,

I’m facing a situation and would appreciate your guidance. We need to issue a credit note for an invoice that was created long ago when the standard VAT rate was 5%. All its line items have this 5% rate.

Our goal is to cancel this old invoice and reissue a new one with updated details and the current 15% VAT. However, when we submit a credit note that mirrors the original invoice (i.e., with a 5% VAT rate), ZATCA rejects it.

What is the correct procedure to handle this? How can we issue a credit note for an invoice with a legacy VAT rate?

Thanks in advance for your help!

1 Like
2

@Shashank all you need is to change is the VAT rate in

Invoiced item VAT rate (BT-152) tag <cac:InvoiceLine / cac:Item / cac:ClassifiedTaxCategory / cbc:Percent> and

VAT category tax rate (BT-119) tag <cac:TaxTotal / cac:TaxSubtotal / cac:TaxCategory / cbc:Percent>

There are some samples with 5% VAT rate in SDK, you may also refer those.