As we don’t have any information or guidance for retention deduction in our latest SDK XML file.
As per our understanding for retention customer retains some amount of the invoice till the end of the Project. We will pay the VAT based on full amount. At the end of the project we will issue one more invoice to collect the Retention amount at that point there is no VAT to be paid (as this has been paid already).If we proceed like this We receive the below warnings for retention. Can we proceed with below warnings? If not please refer the below warnings and provide the solution for the sample.
{
“type”: “WARNING”,
“code”: “BR-CO-16”,
“category”: “EN_16931”,
“message”: “Amount due for payment (BT-115) = Invoice total amount with VAT (BT-112) -Pre-Paid amount (BT-113) + Rounding amount (BT-114).”,
“status”: “WARNING”
}
Yes you can mention the retention amount in the XML note field just to be noted on the human readable invoice as the retention amount should be mentioned on the human readable invoice to reduce the final payable amount for the client to settle for the invoice as this is a receivable accounting treatment and has nothing to do with invoice itself and that’s why 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.
and you shouldn’t issue another tax invoice for the retention amount(s) again to ZATCA, as the amount has been invoice before, and only issue a receipt voucher when you collect it.
If you proceed as per my reply to you, you shouldn’t get any warning, but it seems you have another issue in the XML document, please share the XML document to check.
