Hello
Will it be okay, if the generation of ICV & PIH for invoice at submission time to ZATCA?
Thank you.
@Ankit_Tiwari please support
@saalotaibi please support
@m.mahdi ICV and PIH must be generated at the time when XML is generated. Time when XML is sent for Reporting or Clearance has no impact on ICV and PIH.
Thank you @Ankit_Tiwari,
Yes ICV & PIH are generated when xml is created.
For some invoices we generate xml files in next day after invoices are posted in EGS.
Is that okay?
Dear @m.mahdi, VAT Regulations do not specify any details or requirements about posting accounting entries. So long as the provisions relating to timely issuance of Tax Invoice and recognizing VAT liability as per tax due dates are complied with, you can follow internal policies and generally accepted accounting principles for posting. In phase 2, generation of compliant XML constitutes generation of tax invoice.
@Ankit_Tiwari what I mean is, for example, yesterday we posted some tax invoices in EGS, today we generated xml files (with ICS & PIH) and send it to ZATCA.
@m.mahdi when you say “posted some tax invoices in EGS” i believe you are referring to posting for accounting entries in ERP. As i mentioned earlier, in Phase 2, XML constitutes Tax Invoice. In your example, XML should contain Invoice Issue Date as per ERP system. This is applicable for B2B scenarios. For B2C invoice must be issued to customer immediately upon completing the transaction.
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Hello @Ankit_Tiwari , minor follow-up - do I understand it correctly that the InvoiceIssueDate in this case should be when the invoices were posted in the ERP system and not when the xml was generated?
(as the invoice can be posted today but the xml can be generated say tomorrow along with the ICV, PIH, UUID etc.)
@Yatin invoice issue date is the date on which Invoice is generated as final document (after securing all internal approvals) ready to be sent to customer.
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@Ankit_Tiwari thank you. Another follow-up; do you then mean to say that the since the xml generation constitutes the generation of the tax invoice, the invoice issue date and time should be that time when the xml was generated from the ERP system?
I am unsure because I am considering the posting of the entry in the ERP to be the generation of the final invoice in the ERP (after all internal approvals). Then the xml is generated in the ERP say after 2 days which has the invoice issue date of 2 days earlier and is sent to ZATCA for clearance.
Also, does this mean that there are differences in how the Invoice Issue Date is defined for Phase 1? Thank you !
Hello @Ankit_Tiwari , a quick follwow-up on this please - thank you !
Hello ZATCA team, a quick follow-up on this thread please. Thank you !
cc: @Ankit_Tiwari
Simplified Invoices — need to be submitted within 24 hours.
For Tax Invoices, there is no specified time frame, so we can submit them after finalizing with the customer (a few days later).
In both cases, we have to adjust our inventory immediately, which will impact accounts and/or sub-ledgers.
Therefore, the submission process has nothing to do with posting. We can post either before or after, depending on our business requirements.
@Ankit_Tiwari, please correct me if I’m wrong.
@iqunas thanks. What I’d like to further clarify is whether the IssueDate and IssueTime in Phase 2 corresponds to the generation of the xml or not..
cc: @Ankit_Tiwari
Hello @Ankit_Tiwari , follow-up on this please. Thank you !
@Yatin Invoice Issue Date and Invoice Issue Time should be based on the actual generation of invoice from source system (single source of truth).
Our system follows this process: invoices for B2B transactions are initially created as drafts. Once the client confirms, the IRN, ICV, and hash are generated, and the invoice is then submitted to the API.
@Ankit_Tiwari thank you. So if I understand it right, the InvoiceIssueDate and InvoiceIssueTime refer to the point in time when the invoice is generated from the source system as a final document (after securing all internal approvals)
Additionally, later when the XML is generated; that is when the Hash, ICV, and PIH are also created. Here, the date/time of generation of XML does not matter. Lastly, these Invoices are then shared with ZATCA. Therefore, the sending time to ZATCA also does not matter.
Is my understanding complete?
@Yatin yes your understanding is correct. The date and time of generation of XML will not change Invoice Issue Date and Time. Reporting of B2C invoices must be done within 24 hours of generation (from Invoice issue date and time).
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