BR-KSA-69: Zero-rate or exemption reason code is missing

Official text

A VAT breakdown (BG-23) with VAT Category code (BT-118) 'Zero rated' shall have a VAT exception reason code (BT-121).

Warning · Source: ZATCA E-Invoicing SDK 238-R3.3.8 · Electronic Invoice XML Implementation Standard v1.2, 19 May 2023, §13.3.1, p. 58 · Checked: 26 October 2026

What it means

A VAT breakdown with category Z (zero), E (exempt) or O (out of scope) must carry the reason code TaxExemptionReasonCode, such as VATEX-SA-35 for medicines.

When it happens

• The system writes only the reason text without the code.
• A product marked Z with no reason attached.

How to fix it

1. Link every product that is not standard rated to a reason code from table 11.2.4 of the standard.
2. Write the code in TaxExemptionReasonCode and the text in TaxExemptionReason.

Example

<cac:TaxCategory>
  <cbc:ID>Z</cbc:ID>
  <cbc:Percent>0.00</cbc:Percent>
  <cbc:TaxExemptionReason>Medicines and medical equipment | الأدوية والمعدات الطبية</cbc:TaxExemptionReason>
</cac:TaxCategory>

<cac:TaxCategory>
  <cbc:ID>Z</cbc:ID>
  <cbc:Percent>0.00</cbc:Percent>
  <cbc:TaxExemptionReasonCode>VATEX-SA-35</cbc:TaxExemptionReasonCode>
  <cbc:TaxExemptionReason>Medicines and medical equipment | الأدوية والمعدات الطبية</cbc:TaxExemptionReason>
</cac:TaxCategory>

We ran the wrong example through ZATCA's SDK 238-R3.3.8 on 26 October 2026 and it raised BR-KSA-69. The example is an excerpt of ZATCA's sample Simplified/Invoice/Simplified Tax Invoice with Zero Rated Item.xml with one change; the sample without it does not raise the code.

Related codes

• BR-KSA-CL-04 Zero-rate or exemption reason code does not fit the category
• BR-KSA-18 VAT category is not S, Z, E or O
• BR-KSA-67 Saudi buyer postal code is not 5 digits

Terms on this page

Last updated: 26 October 2026 · What we don't do · Methodology · Correct us · Changelog

First published 2026-10-26 · Archived copy