VAT Treatment of Selling Prepaid Vouchers Above Their Face Value (STC Example)

Clearance and Reporting
1

@Ankit.K.Tiwari
When selling a prepaid telecommunications voucher with a face value of SAR 100 for SAR 120, is it permissible to issue a single electronic invoice containing:

  • Line 1: SAR 100, classified as Outside the Scope of VAT (Tax Category O).
  • Line 2: SAR 17.39, subject to 15% VAT (Tax Category S), resulting in SAR 2.61 VAT.

This would result in a total invoice amount of SAR 120, including SAR 2.61 VAT.

Alternatively, should a tax invoice be issued only for the excess amount of SAR 20 (including VAT), while the voucher’s face value of SAR 100 is documented separately?

Which approach is compliant with ZATCA’s VAT regulations and electronic invoicing (UBL XML) requirements?