BR-KSA-83: Exemption reason code in the VAT breakdown needs a reason text

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-120

For document-level cac:TaxTotal/cac:TaxSubtotal/cac:TaxCategory with cbc:ID Z, E or O, if cbc:TaxExemptionReasonCode is present then cbc:TaxExemptionReason (BT-120) must be present and non-empty. The executed check does not compare the text with the paragraph 11.2.4 list and does not fire when the reason code is absent.

How to fix it

Next to the reason code, add the reason text, e.g. <cbc:TaxExemptionReasonCode>VATEX-SA-32</cbc:TaxExemptionReasonCode><cbc:TaxExemptionReason>Export of goods</cbc:TaxExemptionReason>.

ZATCA's official text

[BR-KSA-83]-A VAT breakdown (BG-23) with VAT Category code (BT-118) 'Exempt from VAT' or 'Zero rated' or 'Not subject to VAT' shall have a VAT exemption (or exception) reason text (BT-120) with one of the values from paragraph 11.2.4 of XML implementation standards on Tax exemption (or exception) reason text - specific to Saudi Arabia.
Source: ZATCA SDK 3.4.8 · ZATCA KSA rules

Fails when (the condition ZATCA's SDK runs)

not((contains($taxExemptionReason, 'VATEX-SA-29FinancialservicesmentionedinArticle29oftheVATRegulations') and string-length($taxExemptionReason) <68) or (contains($taxExemptionReason, 'VATEX-SA-29-7LifeinsuranceservicesmentionedinArticle29oftheVATRegulations')and string-length($taxExemptionReason) <74) or (contains($taxExemptionReason, 'VATEX-SA-30RealestatetransactionsmentionedinArticle30oftheVATRegulations') and string-length($taxExemptionReason) <73) or( contains($taxExemptionReason, 'VATEX-SA-32Exportofgoods') and string-length($taxExemptionReason) <25 )or (contains($taxExemptionReason, 'VATEX-SA-33Exportofservices') and string-length($taxExemptionReason) <28 ) or (contains($taxExemptionReason, 'VATEX-SA-34-1TheinternationaltransportofGoods') and string-length($taxExemptionReason) <46 ) or (contains($taxExemptionReason, 'VATEX-SA-34-2internationaltransportofpassengers') and string-length($taxExemptionReason) <48 ) or (contains($taxExemptionReason, 'VATEX-SA-34-3servicesdirectlyconnectedandincidentaltoaSupplyofinternationalpassengertransport') and string-length($taxExemptionReason) <94 ) or (contains($taxExemptionReason, 'VATEX-SA-34-4Supplyofaqualifyingmeansoftransport') and string-length($taxExemptionReason) <49 ) or (contains($taxExemptionReason, 'VATEX-SA-34-5AnyservicesrelatingtoGoodsorpassengertransportation,asdefinedinarticletwentyfiveoftheseRegulations') and string-length($taxExemptionReason) <112 )or (contains($taxExemptionReason, 'VATEX-SA-35Medicinesandmedicalequipment') and string-length($taxExemptionReason) <40 ) or (contains($taxExemptionReason, 'VATEX-SA-36Qualifyingmetals') and string-length($taxExemptionReason) <28 ) or (contains($taxExemptionReason, 'VATEX-SA-EDUPrivateeducationtocitizen') and string-length($taxExemptionReason) <38 ) or (contains($taxExemptionReason, 'VATEX-SA-HEAPrivatehealthcaretocitizen') and string-length($taxExemptionReason) <39 ) or (matches(normalize-space(cbc:TaxExemptionReasonCode),'VATEX-SA-OOS') )or (contains($taxExemptionReason, 'VATEX-SA-MLTRYsupplyofqualifiedmilitarygoods') and string-length($taxExemptionReason) <45 ) or (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