Query Regarding Sales Return Submission Without Invoice Details

XML and business rules
1

Dear ZATCA Team,

Our client intends to submit bulk sales returns; however, their customers are not providing invoice details when returning goods. In the Sales Return XML, there are fields for OrderReference and BillingReference that relate to the original invoice. Is there any method to submit a sales return to ZATCA without mentioning the original invoice number in such cases?
cac:OrderReference
cbc:IDINV/2024/3280</cbc:ID>
</cac:OrderReference>
cac:BillingReference
cac:InvoiceDocumentReference
cbc:IDINV/2024/3280</cbc:ID>
</cac:InvoiceDocumentReference>
</cac:BillingReference>

2

@Ankit_Tiwari Can you please check this .

3

@Ajith_T referring to the Original Invoices in Credit Notes is a mandate from Article 54 of VAT Regulations. Every Credit Note must refer to Original Invoice(s) it pertains to. If it cannot be done with precise identification of Original Invoice(s)’ IRN(s) then information must be provided on best effort basis but this field cannot be left blank or with dummy information.

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4

When submitting sales returns to ZATCA (Zakat, Tax, and Customs Authority), the fields such as OrderReference and BillingReference in the Sales Return XML are meant to link the return to the original invoice. ZATCA mandates that sales returns be linked to the corresponding original invoice to ensure accurate tax reporting and compliance with VAT regulations.

However, if your client’s customers are not providing the original invoice details, this can complicate the submission process. Unfortunately, ZATCA does not provide a formal method to submit sales returns without linking to the original invoice, as it’s crucial for VAT auditing and validation purposes.

To address this issue, you can consider the following options:

  1. Customer Follow-up: Encourage customers to provide at least a minimal invoice reference or the original invoice number for the returns. This will help comply with ZATCA’s requirements.
  2. Internal Policy: Implement an internal policy to retain a copy of all sales invoices for quicker reference when dealing with returns. This will help fill in the required fields when processing returns.

t is advisable to maintain clear records of all sales transactions, especially in light of ZATCA’s VAT regulations, as missing invoice details could lead to compliance issues. For further clarity or exceptions, contacting ZATCA support directly may be necessary.

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