What rules should be followed when creating an invoice for a customer who is outside KSA? Service is provided inside KSA, but the customer is registered outside KSA.
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@Ankit_Tiwari , please can you answer to this. Thank you.
@S.Quadri You have to check conditions specified in Article 33 of KSA VAT Regulations to decide whether to charge VAT at standard rate or zero rate transaction. As you mentioned service is provided inside KSA, it would attract 15% VAT. You have to issue a regular Tax Invoice with standard rate VAT. Customer address can be outside KSA that will not cause any issue in validations for Clearance.
Hello @Ankit_Tiwari , a quick follow-up to your response. Since the service is provided within KSA for a customer registered outside KSA, will the InvocieTypeCode be 0100000 (Standard Tax Invoice) or 0100100 (Standard Tax Export Invoice) for B2B?
Or, can it also be 0200000 (for B2C)?
@Yatin , when service is provided in KSA but customer’s address is outside KSA you need to determine place of supply as per provisions of GCC VAT Framework Agreement and also validate each condition specified in Article 33 of KSA VAT Regulations. Invoice Type Code will be 0100000 if place of supply is within KSA or any of conditions listed in Article 33 of KSA VAT Regulations is not fulfilled.
So long as transaction is with a business entity (B2B) you should issue only Standard Invoice unless the value of such B2B supply is less than SAR 1000 in which case there is an option to issue Simplified Invoice.
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@Ankit_Tiwari , thank you for the explanation. Quick follow-up: If the transaction is B2C, then the InvoiceTypeCode will be 0200000?
@Yatin yes, correct.
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