Guides

EN 16931: Zero Rated Goods (Z)

This code specifies that the goods taxes are zero rated.

Suggest Edits

Party IDs

If a Document contains a line where the invoiced item's Tax Category Code is Zero Rated, or an allowance or charge with the same Tax Category Code, then you must include the Supplier's Tax Registration ID and/or the their Tax Representative's ID.

If one of the following elements exists:

  • Invoice/InvoiceLine/Item/ClassifiedTaxCategory/ID = Z

or

  • /Invoice/AllowanceCharge[ChargeIndicator='false']/TaxCategory/ID = Z

or

  • /Invoice/AllowanceCharge[ChargeIndicator='true']/TaxCategory/ID = Z

Then the following elements are required:

  • /Invoice/AccountingSupplierParty/Party/PartyTaxScheme/CompanyID
  • /Invoice/TaxRepresentativeParty/Party/PartyTaxScheme/CompanyID

The Buyer's Tax Registration ID and the Buyer's legal entity are not required. However, we do recommend that you include the following elements:

  • /Invoice/AccountingCustomerParty/Party/PartyTaxScheme/CompanyID
  • /Invoice/AccountingCustomerParty/Party/PartyLegalEntity/CompanyID

Tax Rate

If an invoiced item's Tax Category is Zero Rated, the tax rate for the item must be zero.

If Invoice/InvoiceLine/Item/ClassifiedTaxCategory/ID = Z, then Invoice/InvoiceLine/Item/ClassifiedTaxCategory/Percent must be zero.

If a Document-level Allowance's Tax Category is Exempt from VAT, the Document-level allowance's tax rate must be zero.

If Invoice/AllowanceCharge[ChargeIndicator='false']/TaxCategory/ID = Z, then Invoice/AllowanceCharge[ChargeIndicator='false']/TaxCategory/Percent must be zero.

If a Document-level Charge's Tax Category is Exempt from VAT, the Document-level charge's tax rate must be zero.

If Invoice/AllowanceCharge[ChargeIndicator='true']/TaxCategory/ID = Z, then Invoice/AllowanceCharge[ChargeIndicator='true']/TaxCategory/Percent must be zero.

Tax Amount

If a Tax Total includes a Tax Category Code that is Zero Rated, the Tax Amount must be zero.

If Invoice/TaxTotal/TaxSubtotal/TaxCategory/ID = Z, then Invoice/TaxTotal/TaxSubtotal/TaxAmount must be zero.

Tax Exemption

A Tax Total using the Zero Rated Tax Category, does not need to use an exemption code or reason.

Example

The following example shows the Zero Rated Tax Category on the line-level:


<Invoice>
    <!-- code omitted for clarity -->
    <cac:AccountingSupplierParty>
        <cac:Party>
            <cac:PartyTaxScheme> 
                <!-- Seller Tax Registration Identifier -->
                <cbc:CompanyID>EE76576657</cbc:CompanyID>
                <cac:TaxScheme>
                    <cbc:ID>VAT</cbc:ID>  
                </cac:TaxScheme>
            </cac:PartyTaxScheme>
            <!-- code omitted for clarity -->
        </cac:Party>
    </cac:AccountingSupplierParty>
    <cac:AccountingCustomerParty>
        <cac:Party>
            <cac:PartyTaxScheme> 
                <!-- Buyer Tax Registration Identifier -->
                <cbc:CompanyID>EE22334455</cbc:CompanyID>
                <cac:TaxScheme>
                    <cbc:ID>VAT</cbc:ID>  
                </cac:TaxScheme>
            </cac:PartyTaxScheme>
            <cac:PartyLegalEntity>  
                <cbc:RegistrationName>Buyer Official Name Ltd.</cbc:RegistrationName>  
                <!-- Buyer Legal Registration Identifier -->
                <cbc:CompanyID>EE12345600</cbc:CompanyID>  
            </cac:PartyLegalEntity>
            <!-- code omitted for clarity -->
        </cac:Party>
    </cac:AccountingCustomerParty>
    <!-- code omitted for clarity -->
    <cac:TaxTotal>
        <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
        <cac:TaxSubtotal>
            <cbc:TaxableAmount currencyID="EUR">1325</cbc:TaxableAmount>
            <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
            <cac:TaxCategory>
                <!-- Tax Category Code -->
                <cbc:ID>Z</cbc:ID>
                <cbc:Percent>0.00</cbc:Percent>
                <cac:TaxScheme>
                    <cbc:ID>VAT</cbc:ID>
                </cac:TaxScheme>
            </cac:TaxCategory>
        </cac:TaxSubtotal>
    </cac:TaxTotal>
    <!-- code omitted for clarity -->
    <cac:InvoiceLine>
        <!-- code omitted for clarity -->
        <cac:Item> 
            <cac:ClassifiedTaxCategory>
                <!-- Tax Category Code -->
                <cbc:ID>Z</cbc:ID>
                <cbc:Percent>0.00</cbc:Percent>
                <cac:TaxScheme>
                    <cbc:ID>VAT</cbc:ID>
                </cac:TaxScheme>
            </cac:ClassifiedTaxCategory>
        </cac:Item> 
        <!-- code omitted for clarity -->
    </cac:InvoiceLine>
    <!-- code omitted for clarity -->
</Invoice>

Updated 20 days ago