When creating an invoice containing items exempt from Value Added Tax (VAT), the system automatically reviews the data of these items to ensure that tax requirements are completed.
What happens in this case?
If the product is added as a tax-exempt item and the exemption reason (BT-121) is not specified in the product settings, the user will see an alert during invoice issuance with the title “Tax exemption reason missing”.
What does the alert include?
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A message explaining that exempt items require entering the exemption reason.
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Guidance to specify the reason from product settings to avoid tax authority alerts.
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Display of the affected item (example: item 12).
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Two options to proceed:
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Yes, continue: to complete invoice issuance without modification.
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Cancel: to go back and update product data.
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Why does this alert appear?
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Help the user complete tax data correctly.
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Reduce the likelihood of warnings from the Saudi General Authority of Zakat and Tax (GAZT).
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Ensure invoice compliance with e-invoicing requirements.
Important Note
This alert is informational only and does not prevent the user from completing invoice issuance. You can proceed by clicking “Yes, continue,” but it is recommended to add the exemption reason from product settings to avoid any subsequent observations from tax authorities.
