Inquiry Regarding Document-Level and Line-Level Allowances on E-invoices

XML and business rules
1

In the context of ZATCA’s e-invoicing regulations, can an invoice include both document-level allowances and line level allowance on the same invoice? If yes, could you please provide an example scenario illustrating this?

2

Yes, according to ZATCA’s e-invoicing regulations, an invoice can include both document-level allowances (خصم على مستوى الفاتورة) and line-level allowances (خصم على مستوى الصف) on the same invoice.

Here’s an example scenario illustrating this:

Scenario:

“Al-Safa Trading Est.” is issuing an e-invoice to “Omar Electronics” for the purchase of two different electronic items.

Details:

  • Item 1: 10 units of “Smart Speaker X” at a unit price of SAR 500.
  • Item 2: 5 units of “Wireless Headphones Y” at a unit price of SAR 300.

Allowances:

  • Line-Level Allowance (on Item 1): A promotional discount of 10% is applied to each unit of “Smart Speaker X” due to a special offer.
  • Document-Level Allowance: A general discount of SAR 200 is applied to the total invoice amount as a bulk purchase discount.

How it would appear on the e-invoice:

Item Description Quantity Unit Price (SAR) Line Total (SAR) Line-Level Allowance Discounted Line Total (SAR)
Smart Speaker X 10 500 5,000 10% (SAR 500) 4,500
Wireless Headphones Y 5 300 1,500 0 1,500
Subtotal 6,500 6,000
Document-Level Allowance SAR 200
Total Amount Due 5,800

Explanation:

  1. Line-Level Allowance: For “Smart Speaker X,” a 10% discount (SAR 50 per unit, totaling SAR 500 for 10 units) is applied before calculating the subtotal. This directly reduces the cost of that specific item line.
  2. Document-Level Allowance: After calculating the subtotal of all items (after applying any line-level discounts), a further SAR 200 discount is applied to the entire invoice amount.

This example clearly shows that both types of allowances can be included on the same ZATCA-compliant e-invoice, providing flexibility for sellers to offer various types of discounts to their customers. The e-invoicing system is designed to accommodate these different levels of discounts while maintaining accurate record-keeping for tax purposes.

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