In case of Free of cost sales ( FOC) , the seller generally provides 100% discount to customer & may or may not collect VAT from them. How should the invoice be raised in both the cases.
Eg: I am providing 115 SAR worth of goods( including ITC) to my customer. I have to reverse 15 SAR (ITC). What value should I provide in the invoice if I collect or do not collect VAT from my customer.Also is there a requirement to raise a E-invoice?
Please refer to Nominal Supplies provisions covered in Article 15 of KSA VAT Regulations. For those FOC supplies that exceed the threshold specified in Article 15 Tax Invoice or Simplified Tax Invoice must be generated for records, however, invoice is not expected to be presented to the recipient of FOC supplies. From E Invoicing perspective, Nominal Supply XMLs are to be generated just like any regular XML except that the Invoice Transaction Code (KSA-2) should show “1” in 4th digit in NNPNESB structure to indicate that the invoice is a Nominal Supply type.
@Ankit_Tiwari as you suggested in the Q&A session on 17th, I tried generating nominal invoice using Document allowance with VAT category as Out of scope. The invoice got cleared however with the below warning.
An Invoice that contains an Invoice line (BG-25), a Document level allowance (BG-20) or a Document level charge (BG-21) where the VAT category code (BT-151 or BT-95 or BT-102) is 'Not subject to VAT' shall contain at least one VAT breakdown group (BG-23) with the VAT category code (BT-118) equal to 'Not subject to VAT
`
Just wanted to know how do we provide VAT Breakdown for document level discount for "O’ category in this case.
The xml details for this transaction:
cac:Delivery
cbc:ActualDeliveryDate2023-07-01</cbc:ActualDeliveryDate>
cbc:LatestDeliveryDate2023-07-02</cbc:LatestDeliveryDate>
</cac:Delivery>
cac:PaymentMeans
cbc:PaymentMeansCode30</cbc:PaymentMeansCode>
</cac:PaymentMeans>
cac:AllowanceCharge
cbc:ChargeIndicatorfalse</cbc:ChargeIndicator>
<cbc:Amount currencyID=“SAR”>2150.94</cbc:Amount>
cac:TaxCategory
cbc:IDO</cbc:ID>
cbc:Percent0.00</cbc:Percent>
cac:TaxScheme
cbc:IDVAT</cbc:ID>
</cac:TaxScheme>
</cac:TaxCategory>
</cac:AllowanceCharge>
cac:TaxTotal
<cbc:TaxAmount currencyID=“SAR”>322.64</cbc:TaxAmount>
cac:TaxSubtotal
<cbc:TaxableAmount currencyID=“SAR”>2150.94</cbc:TaxableAmount>
<cbc:TaxAmount currencyID=“SAR”>322.64</cbc:TaxAmount>
cac:TaxCategory
cbc:IDS</cbc:ID>
cbc:Percent15.00</cbc:Percent>
cac:TaxScheme
cbc:IDVAT</cbc:ID>
</cac:TaxScheme>
</cac:TaxCategory>
</cac:TaxSubtotal>
</cac:TaxTotal>
cac:TaxTotal
<cbc:TaxAmount currencyID=“SAR”>322.64</cbc:TaxAmount>
</cac:TaxTotal>
cac:LegalMonetaryTotal
<cbc:LineExtensionAmount currencyID=“SAR”>2150.94</cbc:LineExtensionAmount>
<cbc:TaxExclusiveAmount currencyID=“SAR”>0.00</cbc:TaxExclusiveAmount>
<cbc:TaxInclusiveAmount currencyID=“SAR”>322.64</cbc:TaxInclusiveAmount>
<cbc:AllowanceTotalAmount currencyID=“SAR”>2150.94</cbc:AllowanceTotalAmount>
<cbc:PayableRoundingAmount currencyID=“SAR”>0.00</cbc:PayableRoundingAmount>
<cbc:PayableAmount currencyID=“SAR”>322.64</cbc:PayableAmount>
</cac:LegalMonetaryTotal>
cac:InvoiceLine
cbc:ID1</cbc:ID>
cbc:InvoicedQuantity2.0</cbc:InvoicedQuantity>
<cbc:LineExtensionAmount currencyID=“SAR”>2150.94</cbc:LineExtensionAmount>
cac:TaxTotal
<cbc:TaxAmount currencyID=“SAR”>322.64</cbc:TaxAmount>
<cbc:RoundingAmount currencyID=“SAR”>2473.58</cbc:RoundingAmount>
</cac:TaxTotal>
cac:Item
cbc:Nameتوريد أنابيب ملحومة | Premium Television</cbc:Name>
cac:ClassifiedTaxCategory
cbc:IDS</cbc:ID>
cbc:Percent15.00</cbc:Percent>
cac:TaxScheme
cbc:IDVAT</cbc:ID>
</cac:TaxScheme>
</cac:ClassifiedTaxCategory>
</cac:Item>
cac:Price
<cbc:PriceAmount currencyID=“SAR”>1075.47</cbc:PriceAmount>
cac:AllowanceCharge
cbc:ChargeIndicatorfalse</cbc:ChargeIndicator>
cbc:MultiplierFactorNumeric0.0</cbc:MultiplierFactorNumeric>
<cbc:Amount currencyID=“SAR”>0.00</cbc:Amount>
<cbc:BaseAmount currencyID=“SAR”>1075.47</cbc:BaseAmount>
cac:TaxCategory
cac:TaxScheme
cbc:IDVAT</cbc:ID>
</cac:TaxScheme>
</cac:TaxCategory>
</cac:AllowanceCharge>
</cac:Price>
</cac:InvoiceLine>
</ns10:Invoice>
You have to add another Tax SubTotal for “Out of scope” VAT Category Code with negative amount as follows:
cac:TaxSubtotal
<cbc:TaxableAmount currencyID=“SAR”>-2150.94</cbc:TaxableAmount>
<cbc:TaxAmount currencyID=“SAR”>0</cbc:TaxAmount>
cac:TaxCategory
cbc:IDO</cbc:ID>
cbc:Percent0</cbc:Percent>
cbc:TaxExemptionReasonCodeVATEX-SA-OOS</cbc:TaxExemptionReasonCode>
cbc:TaxExemptionReasonNot Subject to VAT</cbc:TaxExemptionReason>
cac:TaxScheme
cbc:IDVAT</cbc:ID>
</cac:TaxScheme>
</cac:TaxCategory>
</cac:TaxSubtotal>
@Ankit_Tiwari We were able to generate this invoice up till now. However after the recent SDK update, we are getting the below error for this:
[ZATCA] → All the document amounts and quantities must be positive.
Can you please help with this?