# Prepayment Adjustment **URL:** \ **Category:** General\ **Created:** [May 25, 2025, 10:49am UTC](https://zatca1.discourse.group/t/prepayment-adjustment/7170 "2025-05-25T10:49:44Z")\ **Posts on this page:** 2\ **Page:** 1
**Author:** ![mohan\_manakkal](https://dub1.discourse-cdn.com/flex013/user_avatar/zatca1.discourse.group/mohan_manakkal/32/996_2.png) [@mohan\_manakkal](https://zatca1.discourse.group/u/mohan_manakkal)\ **Post date:** [May 25, 2025, 10:49am UTC](https://zatca1.discourse.group/t/prepayment-adjustment/7170/1 "2025-05-25T10:49:45Z")
Is it mandatory to allocate the prepayment invoice with tax invoice and cleared with Zatca. Or it will effect the tax payment for that period? ---
**Author:** ![Ankit.K.Tiwari](https://avatars.discourse-cdn.com/v4/letter/a/9d8465/32.png) [@Ankit.K.Tiwari](https://zatca1.discourse.group/u/Ankit.K.Tiwari)\ **Post date:** [May 25, 2025, 10:55am UTC](https://zatca1.discourse.group/t/prepayment-adjustment/7170/2 "2025-05-25T10:55:43Z")
@mohan_manakkal question is not very clear. Hope it gets clarified with below details: 1. When a Prepaid Invoice (Invoice Type Code 386) is issued, it will be sent to ZATCA for Reporting / Clearance. This invoice should also be considered while filing VAT Return for the corresponding period as VAT becomes due upon receiving payment in advance. 2. When a subsequent invoice is generated and seller wants to adjust the amount already received in advance (under prepaid invoice as referred in 1 above), then such adjustment should be made using the UBL tags as explained in Section 8 of [https://zatca.gov.sa/en/E-Invoicing/Introduction/Guidelines/Documents/E-Invoicing\_Detailed\_\_Guideline.pdf](https://zatca.gov.sa/en/E-Invoicing/Introduction/Guidelines/Documents/E-Invoicing_Detailed__Guideline.pdf). Once this is done, you can consider only the net amount (after adjusting prepaid amount) in the VAT Return.