VAT calculation for Excise Tax 100% and 50%

XML and business rules
1

As per the ZATCA XML specifications, Standard tax rates can only be 5% or 15%.

When items that have excise tax of 100% (Tobacco) and 50% (Soft Drinks) are part of the XML Invoice, the reporting fails with the following error:

{
  "validationResults":{
    "infoMessages":[
      {
        "type":"INFO",
        "code":"XSD_ZATCA_VALID",
        "category":"XSD validation",
        "message":"Complied with UBL 2.1 standards in line with ZATCA specifications",
        "status":"PASS"
      }
    ],
    "warningMessages":[
      
    ],
    "errorMessages":[
      {
        "type":"ERROR",
        "code":"BR-KSA-84",
        "category":"KSA",
        "message":"The Document level allowance VAT rate (BT-96), Document level Charge VAT rate (BT-103), VAT category rate(BT-119), Invoiced item VAT rate (BT-152), Prepayment VAT rate(KSA-34) must be limited to one of the following values (5 or 15) when the relevant Document level allowance VAT category code (BT-95), Document level Charge VAT category code(BT-102), VAT category code(BT-118), Invoiced item VAT category code(BT-151), Prepayment VAT Category Code (KSA-33) is “S“- “Standard rated”.  In other words, for Standard Rate VAT Category the rate can either be 15% or 5%.",
        "status":"ERROR"
      }
    ],
    "status":"ERROR"
  },
  "reportingStatus":"NOT_REPORTED"
}
  • In such cases, how can the XML be generated?
  • Are excise tax considered part of the item price and only 15% or 5% VAT should be applied in the XML?
  • or is there any special case that can be passed to the XML to successfully completed the validation?
1 Like
2

Dear @Abhinav ,
How fix it?