BR-KSA-23: VAT-exempt (E) breakdown needs an exemption reason code (BT-121)

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

Warning: accepted with a warningConditional, see belowFields: BG-23, BT-118, BT-121

Applies to each document-level cac:TaxTotal/cac:TaxSubtotal/cac:TaxCategory whose cbc:ID is 'E' (exempt): it must contain a non-blank cbc:TaxExemptionReasonCode (BT-121). This rule checks only that a code is present, not which code it is.

How to fix it

Inside every TaxCategory with cbc:ID 'E', add <cbc:TaxExemptionReasonCode> with the exemption code that applies; the exempt codes named in the rule's text are VATEX-SA-29, VATEX-SA-29-7 and VATEX-SA-30.

ZATCA's official text

[BR-KSA-23]-A VAT breakdown (BG-23) with VAT Category code (BT-118) 'Exempt from VAT' shall have a VAT exemption reason code (BT-121).
Source: ZATCA SDK 3.4.8 · ZATCA KSA rules

Fails when (the condition ZATCA's SDK runs)

not(exists(cbc:TaxExemptionReasonCode) and normalize-space(cbc:TaxExemptionReasonCode )!='' )

Related rules

• BR-45 · Each VAT breakdown needs a taxable amount (BT-116)
• BR-46 · Each VAT breakdown needs a VAT amount (BT-117)
• BR-47 · Each VAT breakdown needs a VAT category code (BT-118)
• BR-48 · Each VAT breakdown needs a VAT rate (BT-119) unless category is O
• BR-CO-18 · Every invoice needs at least one VAT breakdown
• BR-E-01 · Exempt (E) items need an 'E' VAT breakdown