Used Goods (Car) Sale - Profit Margin Method

XML and business rules
1

On used goods (cars) sale, the VAT Rate shall be applied on the profit margin (as per ZATCA Article 48 (2.a) of VAT Regulations), how to structure the XML invoice for such invoice?

  1. In which XML tag should the profit margin (amount) be mentioned for VAT Calculations?
  2. Is there any XML sample format available for such an invoice.
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2

Please note that supply of Used Goods under Profit Margin method are not covered in E Invoicing Phase 2 scope currently and will not require Phase 2 compliant XMLs till further official announcement. Technical specifications will be issued separately in due course.

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3

Hello,

What about other goods subject to profit margin scheme, such as prepaid cards / gift cards, etc.?

4

@nadima prepaid cards / gift cards are not covered under Profit Margin scheme. Only used cars are covered.

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5

@Ankit_Tiwari any updates on the profit margin scheme for used cars? Is it still out of scope for Phase 2?

Additionally, what if a company uses a car internally and later sells it as a first-time sale to the public? For example, Toyota using a car for Toyota company’s own purposes and then selling it as a used vehicle, would this also be excluded from e-invoicing?

6

@Ankit_Tiwari please advice on the above

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