Rental Invoices

General
1

HI Zatca Team,

Please let me know is it required to clear or report rental invoices( commercial or residential apartments rental bill) to Zatca api.

2

@mohan_manakkal Commercial lease is subject to VAT, tax invoice must be generated and sent for Clearance / Reporting. Residential lease is exempt from VAT, by VAT regulations there is no mandate to issue tax invoice for exclusively exempt supply. However, XML can still be sent to ZATCA for reporting or clearance keeping VAT category code as E and exemption reason code as VATEX-SA-30

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3

Thanks for the clarifications.. In the case of a rental invoice with VAT, sometimes it is necessary to add the security deposit amount, maintenance fee, or other charges to the rental invoice. In such cases, these amounts are not subject to VAT. What code should be used for the VAT exemption reason?

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4

@mohan_manakkal for refundable security deposit you can use code “O” for Out of scope and reason code VATEX-SA-OOS, reason text is a free-text field you can provide based on facts. For maintenance fee and other charges, please check your VAT position again as these are generally subject to VAT.

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