maryam
August 25, 2025, 2:41pm
1
On the document level, in ‘Sum of VAT’, we are getting and displaying the ‘Sum of items VAT amount’,
However, one of our client company is calculating the Sum of VAT directly on ‘Total before tax’ value which is causing 3 halala difference.
For example, Our calculations and value on XML/Human Readable Formats:
Total before tax: 11238.01
Discount: 0
Sum of VAT: 1685.73
Sum of line items VAT: 1685.73
However, the client is calculating directly on 11238.01 which is giving
VAT: 1685.7015 (3 halala difference)
Kindly confirm the calculation of the sum of VAT on the document level.
Dear @maryam ,
Please note that para 8.5 of the XML implementation Standards provides the formula for calculating “Invoice Total VAT Amount (BT-110)” as follows:
8.5 Invoice total VAT amount
The invoice total VAT amount (BT-110) is the sum of all VAT Category VAT amounts (BT-117).
Para 9.6 provides calculation formula for BT-117 as follows:
VAT category tax amount (BT-117) = VAT category taxable amount (BT-116) × (VAT rate (BT-119) ÷ 100)
VAT category taxable amount (BT-116) = ∑(Invoice line net amounts (BT-131)) + Document level charge amount (BT-99) − Document level allowance amount (BT-92).
Based on above, it is clear that Invoice Total VAT Amount must be calculated using above formulas and not directly from invoice total amount excl VAT. All taxpayers must follow the calculations provided in XML Implementation Standards mandatorily otherwise it will result in non-compliance with E-Invoicing requirements.