Nominal Invoice, where promotional item is Buy 1 get 1 free. And VAT collection if consideration limit exceeds

XML and business rules
1

If an invoice has a promotion on an item, i.e. Buy One, Get One Free. Where one item is charged on full price, where as the Free item will be charged 0. Will it be considered as a Nominal Invoice or a Normal Invoice?

Also as per Implementing regulations of the VAT Law, Article 15, free quantity without consideration is 200 SAR per recipient per year. If the limit exceeds, than consideration shall be applied.

For example,
Item price is 100, Discount 100, VAT 15, and net amount is 15. How to generate the XML invoice in such case where VAT is being collected?

1 Like
2

@Ankit_Tiwari please check

3

Dear @maryam ,
This forum is intended only for discussing E invoicing issues and cannot be used to clarify tax positions. For tax position please refer guideline published in this context. https://zatca.gov.sa/en/HelpCenter/guidelines/Documents/Business%20promotions.pdf

From E invoicing perspective, if you take a position that transaction will not attract Nominal Supply provisions, then a normal invoice can be issued with Unit Price as 0 or discount of 100% as you prefer based on existing internal processes.