The discussion is about how to correctly issue a simplified ZATCA-compliant invoice for a "Buy 1 Biryani, Get 1 Free" promotion in a restaurant

XML and business rules
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@Ankit.K.Tiwari

How should a restaurant handle the “Buy 1 Biryani, Get 1 Free” promotion on a ZATCA simplified tax invoice—specifically, how should both items be listed, should the second item be shown as zero price or as a discount, and how is VAT calculated in this scenario?

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@midhunsankar please refer paragraph 6.3 of ZATCA’s Guideline on Business Promotions. If free good is covered under definition of “Nominal Supply” attracting VAT then below are the steps for XML:

  1. Include the “free good” as any other regular line item with actual Unit Price, quantity, VAT, line extension amount with VAT Category Code “S”.
  2. At Document Level, you can include a discount equal to the price of “free good” with out of scope VAT-Category-Code “O”.
  3. In sub-totals you will have to include 2 sub-totals, one for the Standard Rate for both line items and VAT on it. Second sub-total for Out of scope VAT Category with a “negative” value equal to the document level discount amount.
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can you provide us print paper layout for this case, describe
the invoice net value
invoice discount
invoice tax
invoice G. total

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@M.serhan ZATCA does not mandate any particular layout, so long as all mandatory fields exist on invoice, it is up to the taxpayer to choose the layout.