How do I cancel an invoice ZATCA has already cleared?

Once the Zakat, Tax and Customs Authority (ZATCA) has cleared a standard Tax Invoice, you cannot simply delete, modify, or cancel it. If the transaction is cancelled, the consideration changes, goods are returned, or an invoice correction is required, the supplier must issue an electronic credit note or debit note, as applicable, linked to the original invoice. ZATCA's guidance explicitly requires the adjustment document to reference the original invoice.

The adjustment document must follow the applicable Phase 2 requirements. A credit or debit note based on a standard Tax Invoice follows the standard clearance process, while one based on a Simplified Tax Invoice follows the simplified reporting process. The original invoice should remain in the records so the transaction and its adjustment can be traced.

Key points

• A cleared invoice cannot simply be deleted or cancelled.
• Issue an electronic credit note or debit note, depending on the adjustment.
• Reference the original invoice using the required invoice reference.
• Apply the correct VAT treatment to the adjustment.
• Follow the clearance or reporting process that applies to the original invoice type.
• Keep the original invoice and adjustment document for audit purposes.