Tax Validation in Invoices, Returns, Credit Notes, and Debit Notes

For UAE accounts with the UAE E-Invoicing application enabled, the system automatically validates that the selected tax matches the product classification in each transaction line. This applies to sales invoices, returns, credit notes, and debit notes. The validation ensures that excise products can only use excise taxes, while non-excise products can only use non-excise taxes.
This guide explains how the validation works and what happens when the selected tax does not match the product classification.

Before using this feature, make sure the following requirements are met:

• The account country must be set to United Arab Emirates.
• The UAE E-Invoicing application must be enabled.
• Products must be correctly classified as excise or non-excise products from the Products & Services screen.

Transactions Where Validation Is Applied

Tax validation is applied to the following transactions:

• Sales Invoices
• Sales Returns
• Credit Notes
• Debit Notes

How Automatic Validation Works?

When selecting a product in any transaction line, the system automatically:

• Fills the “Unit price” from the product data.
• Fills the “Tax” from the product settings.
• Detects whether the product is classified as “Excise” or “Non-excise” and adjusts the available tax list accordingly.

Validation Rules for Each Product Type

Excise Products

• Only excise taxes appear in the tax list.
• If the user tries to select a non-excise tax, the following message will appear:“This tax cannot be selected because the selected item is subject to Excise Tax.”

Non-Excise Products

• Only non-excise taxes appear in the tax list.
• If the user tries to select an excise tax, the following message will appear:“An excise tax cannot be selected for a non-excise product.”

Validation When Saving the Transaction

In addition to instant validation when changing the tax, the system validates all transaction lines again when saving:

• Each line is validated independently.
• If any line contains a tax that does not match the product classification, the system prevents saving the document and displays the related validation message.
• All invalid lines must be corrected before saving.

Validation is applied independently to each line, which means the same transaction can contain both excise and non-excise products as long as each product uses the correct tax type.

Notes

• This validation is only applied when the UAE E-Invoicing application is enabled.
• If the product is not classified as an excise product, excise taxes will not appear in its tax list.
• Make sure all products are classified correctly before issuing invoices to avoid validation errors.