VAT Adjustment for Advance Amount in the Tax Invoice

XML and business rules
1

  1. VAT category taxable amount (BT-116) = Tax Exclusive Amount (BT-109) - Prepayment VAT Category Taxable Amount (KSA-31)

    • Example: Taxable Amount = 1,000,000 – 200,000 => 800,000

  2. VAT category tax amount (BT-117) = VAT category taxable amount (BT-116) * (VAT rate (BT-119) ÷ 100)

    • Example: Tax Amount = 800,000 * (15.0 ÷ 100) => 120,000

  3. Payable Amount (BT-115) = Tax Inclusive Amount (BT-112) - Prepayment VAT Category Taxable Amount (KSA-31)

    • Example: Payable Amount = 1,120,000 – 200,000 => 920,000

We would like to seek clarification on whether we should implement this calculation method. Our concern is that these calculations appear to deviate from the Electronic Invoice XML Implementation Standard outlined in the E-Invoicing resolution dated 2023-05-19.

Your guidance on whether to proceed with this approach or any alternative methods that align with the standard would be greatly appreciated. We want to ensure full compliance with ZATCA regulations in our invoicing processes.

2

@sameer
Formulas are incorrect. Please refer XML Implementation Standards for correct calculations.

Below are relevant extracts:
VAT category taxable amount (BT-116) = ∑(Invoice line net amounts (BT-131)) + Document level charge amount (BT-99) − Document level allowance amount (BT-92)

VAT category tax amount (BT-117) = VAT category taxable amount (BT-116) × (VAT rate (BT-119) ÷ 100)

Amount due for payment (BT-115) = Invoice total amount with VAT (BT-112) -Pre-Paid amount (BT-113) + Rounding amount (BT-114)

Section 9.2 of XML Implementation standards contain calculations.