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ZATCA Compliance: VAT Exemption Reason Code

April 28, 2026

When issuing an invoice that includes VAT-exempt line items, the system now automatically checks for the presence of the exemption reason code (BT-121) before submitting the invoice.

If the reason code has not been filled in the product settings, a non-blocking warning will appear asking you to specify the exemption code before submission. This helps you avoid ZATCA warnings and keep your invoices compliant.

Note: This warning will not prevent you from completing the action, but it gives you advance notice to avoid any ZATCA alert.

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