As a vital issue for contracting sector, how can we reflect retention deductions to invoice? Last update give us to opportunity to reflect advance deductions. But there is no any information or guidance for retention deductions, material on site deductions, etc.
hi, you got any answer to your case because we are facing the same
The retention amount should be mentioned on the human readable invoice to reduce the final payable amount. It will not be included in the XML, and it will not reduce the Tax amount. This means that you will collect from the customer a lesser amount but pay the VAT based on the full amount.
At the end of the project you will issue a Commercial Invoice to collect the Retention amount(s), and at that point there is no VAT to be paid (as this has been paid already).
Hi @mattias.lundblad , are you an official from ZATCA? Is this approach confirmed in any documentation?
No I’m not. But this is how ZATCA have been answering this question during one of the weekly Q&A sessions.