Export Invoice with out of scope line item

XML and business rules
1

My party is outside KSA.
and there is only one line item that is non-vatable (not subject to VAT).
We are considering the transaction type as EXINV (Export Invoice), the VAT Category Code as “Z” (Zero-rated goods) and the VAT Category Code reason is the one from a predefined list of zero-rated reasons.

Is the above treatment correct or should I consider the line item as non-Vatable only instead of showing it as zero-rated?

2

@shivangi.garg
As discussed during Q&A sessions, you need to determine if transaction is “zero rated” or “out of scope”. If it is zero rated, then one of the VAT exemption/exception reason codes and reason text must be selected from the list provided in para 11.2.4 of XML Implementation Standards. For Out of scope, you have to select the code as VATEX-SA-OOS and provide reason based on facts.