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Saudi Zatca Tax categories and exception reason codes

These are the Tax categories and exception reason codes for the Saudi Arabian Zatca Phase-2 implementation. We have all these codes listed in our Zatca App

July 25, 2024 · 1 min read

These are the Tax categories and exception reason codes for the Saudi Arabian Zatca Phase-2 implementation. We have all these codes listed in the Sales invoice and on item-tax category template on our ERPNext zatca app.

Category Standard rate

Standard rate is 15% . If you are invoicing against old contract, there is 5% tax also allowed.

Zero-rated goods

Export of goods	Z	VATEX-SA-32
Export of services	Z	VATEX-SA-33
The international transport of Goods	Z	VATEX-SA-34-1
International transport of passengers	Z	VATEX-SA-34-2
services directly connected and incidental to a Supply of international passenger transport	Z	VATEX-SA-34-3
Supply of a qualifying means of transport	Z	VATEX-SA-34-4
Any services relating to Goods or passenger transportation, as defined in article twenty-five of these Regulations	Z	VATEX-SA-34-5
Medicines and medical equipment	Z	VATEX-SA-35
Qualifying metals	Z	VATEX-SA-36
Private education to citizen	Z	VATEX-SA-EDU
Private healthcare to citizen	Z	VATEX-SA-HEA

Category Exempt from Tax

Financial services mentioned in Article 29 of the VAT Regulations	E	VATEX-SA-29
Life insurance services mentioned in Article 29 of the VAT Regulations	E	VATEX-SA-29-7
Real estate transactions mentioned in Article 30 of the VAT Regulations	E	VATEX-SA-30

Services outside the scope of VAT or Supplies not subject to VAT

O VATEX-SA-OOS - The reason is a free text, has to be provided by the taxpayer on case to case basis.

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We have published entire source code for Zatca implementation as open-source here ( https://github.com/ERPGulf/zatca_erpgulf )

We also have free and open-source zatca app which works on ERPNext , and also act as an intermediatory server

Saudi Zatca Tax categories and exception reason codes

Team ERPGulf