BR-KSA-CL-04: Zero-rate or exemption reason code does not fit the category

Official text

If VAT category Code (BT-118) is 'Z', or 'E', VAT exemption (or exception) reason code (BT-121) must exist with one of the values from paragraph 11.2.4 of XML implementation standards on Tax exemption (or exception) reason code - specific to Saudi Arabia.

Warning · Source: ZATCA E-Invoicing SDK 238-R3.3.8 · Electronic Invoice XML Implementation Standard v1.2, 19 May 2023, §13.3.3, p. 65 · Checked: 26 October 2026

What it means

The reason code must come from the list for that category in table 11.2.4: for Z, codes such as VATEX-SA-32 for exports and VATEX-SA-35 for medicines; for E, codes such as VATEX-SA-29 for financial services. VATEX-SA-OOS is for category O only.

When it happens

• An O or E code written on a line whose category is Z.
• A code written in a different form (an extra space or dash).

How to fix it

1. Pick the code from the list for the line's category in table 11.2.4.
2. Copy the code exactly, with no changes.

Example

<cac:TaxCategory>
  <cbc:ID>Z</cbc:ID>
  <cbc:Percent>0.00</cbc:Percent>
  <cbc:TaxExemptionReasonCode>VATEX-SA-OOS</cbc:TaxExemptionReasonCode>
  …
</cac:TaxCategory>

<cac:TaxCategory>
  <cbc:ID>Z</cbc:ID>
  <cbc:Percent>0.00</cbc:Percent>
  <cbc:TaxExemptionReasonCode>VATEX-SA-35</cbc:TaxExemptionReasonCode>
  …
</cac:TaxCategory>

We ran the wrong example through ZATCA's SDK 238-R3.3.8 on 26 October 2026 and it raised BR-KSA-CL-04. 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-69 Zero-rate or exemption reason code is missing
• BR-KSA-18 VAT category is not S, Z, E or O
• BR-KSA-CL-01 Currency code (BT-5) must be according to ISO 4217:2005

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