BR-E-07: Exempt (E) document charges must have a VAT rate of 0

Explained by Matheel from ZATCA's rule text and the condition SDK 3.4.8 executes · Updated October 24, 2026

Error: the invoice is rejectedConditional, see belowFields: BG-21, BT-102, BT-103

Applies when the document has a document-level cac:AllowanceCharge with cbc:ChargeIndicator = true whose cac:TaxCategory has cbc:ID = 'E' (VAT): the charge rate cbc:Percent (BT-103) should be 0. In SDK 3.4.8 the executed check is looser: it passes as long as any document-level cac:AllowanceCharge/cac:TaxCategory/cbc:Percent equals 0.

How to fix it

In the charge's cac:TaxCategory use <cbc:ID>E</cbc:ID><cbc:Percent>0</cbc:Percent>.

ZATCA's official text

[BR-E-07]-In a Document level charge (BG-21) where the Document level charge VAT category code (BT-102) is "Exempt from VAT", the Document level charge VAT rate (BT-103) shall be 0 (zero).
Source: ZATCA SDK 3.4.8 · EN 16931 (CEN) rules

Fails when (the condition ZATCA's SDK runs)

cac:AllowanceCharge[cbc:ChargeIndicator=true()]/cac:TaxCategory[normalize-space(cbc:ID)='E'][cac:TaxScheme/normalize-space(upper-case(cbc:ID))='VAT'] and not(((/ubl:Invoice/cac:AllowanceCharge/cac:TaxCategory /cbc:Percent)=0))

Related rules

• BR-36 · Each document-level charge needs an amount (BT-99)
• BR-37 · Each document-level charge needs a VAT category code (BT-102)
• BR-E-01 · Exempt (E) items need an 'E' VAT breakdown
• BR-E-08 · Exempt (E) taxable amount must match the exempt lines and adjustments
• BR-KSA-13 · 'Not subject to VAT' (O) charges must have a VAT rate of 0 if given
• BR-KSA-19 · Each document-level charge needs a reason code