ERPADMIN ERPADMIN

Hello Team,

According to ZATCA requirements, we need a solution for issuing advance invoices against customer advance payments.

As per the regulations of Saudi Arabia VAT LAW , the relevant details can be found on Page 20, Article 20, Sections 2 and 3, as outlined below:

2- In all other cases where Supplies of Goods or services are made on a continuous basis,

[each occurrence] is deemed a separate Supply on which the tax becomes due on the

earlier of the date an Invoice is issued or payment is made in respect of those Goods

or services, to the extent of the amount invoiced or paid.

3- In the event that no payment has been received or invoice has not been issued in

relation to continuous Supplies of Goods or services by a Taxable Person, the supply

shall be occurred and the tax shall be due on the date falling twelve months after the

subsequent date of any of the following two dates:

a) the date on which the Supply of Goods or services commenced; and

b) the previous date on which the Supply took place by reason of an Invoice being

issued or payment being made.

I appreciate your prompt attention to this matter!

Refer the below link for similar solutions in EU regions

https://learn.microsoft.com/en-us/dynamics365/finance/localizations/europe/emea-advance-invoice

Regards,

Zubair NK