Invoice tax categories MUST be coded using UNCL5305 code list

XML and business rules
1

@idaoud , @Lina-alrehaili1
we are getting error message BR-CL-18 "Invoice tax categories MUST be coded using UNCL5305 code list "
when we applied standard vat 15% at 1 line item and vat 0% or exempt reason at 2nd line item .
Regards,
Zahid Ali.

2

Dear @zahid,

The error “Invoice tax categories MUST be coded using UNCL5305 code list” occurs because the tax category codes applied to your invoice line items are not compliant with the UNCL5305 standard code list.

To resolve this, please follow these steps:

1. Use the Correct Codes from UNCL5305

Ensure each line item in your invoice uses the appropriate VAT code as per the UNCL5305 code list:
• S → Standard rate (e.g., VAT 15%)
• Z → Zero rate
• E → Exempt from VAT
• AE → VAT Reverse Charge

2. Update Your XML Structure

Here is an example for a 15% VAT line item (Standard Rate):


<cac:TaxCategory>
 <cbc:ID>S</cbc:ID>
 <cbc:Percent>15</cbc:Percent>
</cac:TaxCategory>

For a VAT-exempt line item:

<cac:TaxCategory>
 <cbc:ID>E</cbc:ID>
 <cbc:Percent>0</cbc:Percent>
 <cbc:TaxExemptionReason>Exempt</cbc:TaxExemptionReason>
</cac:TaxCategory>

3. Ensure each line item has the proper VAT category code (S, Z, E, or AE).
4. Validate your XML file against ZATCA’s validation schema to ensure compliance.

In summary, to resolve the error:
• Use S for 15% VAT, Z for 0%, and E for Exempt items.
• Ensure the correct XML paths (cbc:ID) contain the tax category codes.
• Validate your file to ensure it meets ZATCA’s requirements.

For full details, please follow the steps in the documentation below:

20230519_ZATCA_Electronic_Invoice_XML_Implementation_Standard_ vTrack.pdf

Let me know if further clarification is needed.

Thanks,