Simplified export invoice

[hemanthsr]

Our client sells goods and services to customers outside of SA. We sent the invoice transaction code KSA-2 as 0200100, which is a simplified export invoice, but we got an error from Zatca saying that this is not a valid combination.

How do we handle b2c export scenarios?
Should we use the 0200000 transaction and Z tax category codes in the line items?

[Ankit_Tiwari]

@hemanthsr as per Article 53(1) of KSA VAT Regulations only Standard Tax Invoice can be issued for Export transactions. It cannot be a simplified invoice. You have to change the invoice type code to 0100100 and include customer’s name, address and any available ID. Irrespective of the type of ID your customer provides, it should be included in the field “Other Buyer ID (BT-46)” under attribute “OTH”.

[naman-omniful]

CLEARNCE ERROR on changing invoice type

@abdulah, Reporting API should be used only for sending Simplified Invoices (B2C invoices where Invoice Type Code is 0200000). You are getting this error as you may be sending Standard Tax Invoice (B2B invoice with Invoice Type Code 0100000) to Reporting API. If you need to send B2B invoice, please use Clearance API. Also, please go through guidelines on ZATCA’s website.

As per the above replies, is it correct to say that all the export invoices outside Saudi would be B2B not B2C?

[nandeeshgupta]

@Ankit_Tiwari But if the order is a B2C orders shouldn’t we simply use ‘0200000’ and send Tax exemption reason code and category code (‘E’)?

[Ankit_Tiwari]

@naman-omniful type of invoice (Standard or Simplified) does not decide whether a transaction is B2B or B2C. It is other way around, transaction type B2B requires a Standard Invoice with exception for supplies below SAR 1000 where seller can also issue a Simplified invoice. For Exports, Article 53(1) of VAT Regulations require a Standard Invoice.

[Ankit_Tiwari]

@nandeeshgupta please refer Article 53(1) of KSA VAT Regulations, Standard Invoice is required for all export transactions.

[Yatin]

Hello @Ankit_Tiwari , I can see it in the documentation that the InvoiceTypeCode for Standard Tax Invoices is “0100000” and not “0100100”.

Can you please help clarify? When trying both of these codes, we do not get an error but curiosity arises.

Thanks !

[Ankit_Tiwari]

Dear @Yatin ,
Please look at the description of field “Invoice Type Transaction” (KSA-2) in Data Dictionary - it defines the structure of 7 digit code: Standard Invoice must have first 2 digits as 01. Other 5 digits depend on nature of transaction as defined in Data Dictionary (reproduced below for ease of reference):

Structure:
NNPNESB
where
NN (positions 1 and 2) = invoice subtype:

• 01 for tax invoice
• 02 for simplified tax invoice
  P (position 3) = 3rd Party invoice transaction, 0 for false, 1 for true
  N (position 4) = Nominal invoice transaction, 0 for false, 1 for true
  E (position 5) = Exports invoice transaction, 0 for false, 1 for true
  S (position 6) = Summary invoice transaction, 0 for false, 1 for true
  B (position 7) = Self-billed invoice transaction, ) for false, 1 for true

[Yatin]

Thank you @Ankit_Tiwari , I tried sending 0100100 for a simplified export invoice but got the below server error:

Does it mean that we need to send this to the Clearance API instead?

[Ankit_Tiwari]

@Ankit_Tiwari

as per Article 53(1) of KSA VAT Regulations only Standard Tax Invoice can be issued for Export transactions. It cannot be a simplified invoice. You have to change the invoice type code to 0100100 and include customer’s name, address and any available ID. Irrespective of the type of ID your customer provides, it should be included in the field “Other Buyer ID (BT-46)” under attribute “OTH”.

you are sending a Standard Invoice (invoice type starting 01) using Reporting API, therefore you are getting the warning, Standard Tax Invoice must be sent using Clearance API. Please note Simplified Invoice cannot be issued for Export transactions as explained in earlier comments in this thread above.