VAT Clarification on Charge amount

XML and business rules
1

Hi @Ankit_Tiwari ,

I would appreciate your guidance regarding the VAT treatment applied to a charge at the invoice level, as outlined below:

Scenario 1: When two different goods are supplied, both with a VAT rate of 0% (tax codes “Z” and “E”).

In this case, should the VAT on the transport cost be zero, or should it be charged at 15% on the invoice?

We’ve conducted some testing on our end by passing the items as 0% and applying the charge at 15%. However, the Header Calculated Tax in the response (XML) is coming out as 0.00.

Your insights and clarification on this matter would be greatly appreciated.

2

@Sanjay your question whether transport cost should be zero rated or subject to 15% VAT is a tax policy question and this is not the right forum for tax policy questions. Are you facing any challenge in terms of creating a valid XML for such scenarios? If yes, please share the warning or error you are receiving.