BR-KSA-18: VAT category code must be S, Z, E or O

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

Error: the invoice is rejectedAll invoicesFields: —

Each tax category cbc:ID (in cac:TaxSubtotal/cac:TaxCategory, line cac:TaxSubtotal, document-level cac:AllowanceCharge/cac:TaxCategory and line cac:Item/cac:ClassifiedTaxCategory) must be S, Z, E or O. The executed check tests each code; the listed test text is malformed and does not express this.

How to fix it

Use S (standard), Z (zero-rated), E (exempt) or O (not subject to VAT), e.g. <cbc:ID>S</cbc:ID>.

ZATCA's official text

[BR-KSA-18]-VAT category code must contain one of the values (S, Z, E, O).
Source: ZATCA SDK 3.4.8 · ZATCA KSA rules

Fails when (the condition ZATCA's SDK runs)

not( contains( ' S Z E O ',(.)) )

Related rules

• BR-KSA-15 · Standard tax invoices (388) need a supply date
• BR-KSA-16 · Payment means code must be a valid UNTDID 4461 code
• BR-KSA-17 · Credit and debit notes need a reason for issuing
• BR-KSA-19 · Each document-level charge needs a reason code
• BR-KSA-20 · Each invoice line charge needs a reason code
• BR-KSA-21 · Each document-level charge needs a charge reason text (BT-104)