Zero Price In Invoice lines

XML and business rules
1

Dear @Ankit_Tiwari

I have a scenario, Where Some how we posted an invoice with one of the line item with Zero Price and Tax it also Zero. but we have VAT Category as ‘VAT’
This is allowed by ZATCA ? If not then what we need to do. This is happened mistakenly.

Screenshot 2024-09-17 161929
Screenshot 2024-09-17 161929713×132 5.98 KB

Attaching the XML Content as well for lines.

cac:InvoiceLine
cbc:ID1</cbc:ID>
<cbc:InvoicedQuantity unitCode=“Manual”>1.000000</cbc:InvoicedQuantity>
<cbc:LineExtensionAmount currencyID=“SAR”>0.00</cbc:LineExtensionAmount>
cac:TaxTotal
<cbc:TaxAmount currencyID=“SAR”>0.00</cbc:TaxAmount>
<cbc:RoundingAmount currencyID=“SAR”>0.00</cbc:RoundingAmount>
</cac:TaxTotal>
cac:Item
cbc:NameJ.B. Officeprint 1420</cbc:Name>
cac:ClassifiedTaxCategory
cbc:IDS</cbc:ID>
cbc:Percent15</cbc:Percent>
cac:TaxScheme
cbc:IDVAT</cbc:ID>
</cac:TaxScheme>
</cac:ClassifiedTaxCategory>
</cac:Item>
cac:Price
<cbc:PriceAmount currencyID=“SAR”>0</cbc:PriceAmount>
</cac:Price>
</cac:InvoiceLine>
cac:InvoiceLine
cbc:ID2</cbc:ID>
<cbc:InvoicedQuantity unitCode=“Manual”>1.000000</cbc:InvoicedQuantity>
<cbc:LineExtensionAmount currencyID=“SAR”>150.00</cbc:LineExtensionAmount>
cac:TaxTotal
<cbc:TaxAmount currencyID=“SAR”>22.50</cbc:TaxAmount>
<cbc:RoundingAmount currencyID=“SAR”>172.50</cbc:RoundingAmount>
</cac:TaxTotal>
cac:Item
cbc:NameJ.B. Officeprint - 1111</cbc:Name>
cac:ClassifiedTaxCategory
cbc:IDS</cbc:ID>
cbc:Percent15</cbc:Percent>
cac:TaxScheme
cbc:IDVAT</cbc:ID>
</cac:TaxScheme>
</cac:ClassifiedTaxCategory>
</cac:Item>
cac:Price
<cbc:PriceAmount currencyID=“SAR”>150</cbc:PriceAmount>
</cac:Price>
</cac:InvoiceLine>
cac:InvoiceLine
cbc:ID3</cbc:ID>
<cbc:InvoicedQuantity unitCode=“Manual”>1.000000</cbc:InvoicedQuantity>
<cbc:LineExtensionAmount currencyID=“SAR”>225.00</cbc:LineExtensionAmount>
cac:TaxTotal
<cbc:TaxAmount currencyID=“SAR”>33.75</cbc:TaxAmount>
<cbc:RoundingAmount currencyID=“SAR”>258.75</cbc:RoundingAmount>
</cac:TaxTotal>
cac:Item
cbc:NameJ.B. Officeprint 1186</cbc:Name>
cac:ClassifiedTaxCategory
cbc:IDS</cbc:ID>
cbc:Percent15</cbc:Percent>
cac:TaxScheme
cbc:IDVAT</cbc:ID>
</cac:TaxScheme>
</cac:ClassifiedTaxCategory>
</cac:Item>
cac:Price
<cbc:PriceAmount currencyID=“SAR”>225</cbc:PriceAmount>
</cac:Price>
</cac:InvoiceLine>

2

@Ankit_Tiwari Can you please guide!

3

zero price provides a zero vat value under “S” category is allowed
but you have to follow invoice rules & max limits regarding total free item’s you provide for customers

4

@Roohul-Amin-Seidor your question is not clear. what do you mean by “VAT Category” = “VAT”? Do you mean VAT Category is “S”?. Can you please elaborate reason for unit price being zero? As @Embro suggested, you need to also check provisions of Article 15 of KSA VAT Regulations regarding Nominal Supplies or Deemed Supplies where free of charge items or gifts may also attract VAT although seller does not collect it from customer.

5

@Ankit_Tiwari
Yes, I mean to say Tax Category “S”. This happened by mistake due to no limitation in ERP. Do it impact to our Invoicing ?

6

@Roohul-Amin-Seidor if the item was free of charge then it is ok to provide unit price as zero under VAT Category Standard Rate “S”. If the value of such free of charge supplies exceed thresholds specified in Article 15 of VAT Regulations, then you have to classify such invoice as Nominal Supply invoice and include actual price in unit price and not zero.

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