Zero-Rated Invoice
A Zero-Rated Invoice is a tax-exempt billing document issued for goods or services that are legally subject to 0% tax. These invoices are common in export shipments or services falling under government-approved exemptions. In ERP systems, such invoices are flagged under specific regulatory codes, allowing accurate reporting, tax return preparation, and audit traceability, while still treating the transaction as taxable for compliance purposes.
How Zero-Rated Invoice Works in Logistics?
When a job qualifies for zero-rated treatment, ERP applies a 0% tax rate from the relevant tax configuration table. The invoice is generated with proper tax codes, and the transaction is included in VAT or GST filings as a tax-exempt sale. ERP systems track these invoices separately from standard taxable entries to ensure clarity during financial reviews, audit submissions, or tax claim processes, especially for cross-border or duty-free shipments.
Zone-Based Configuration in ERP Systems
Zone Definition & Boundaries
ERP may apply zero-rating based on export zones, bonded warehouses, or international destinations flagged in tax logic settings.
Operational Application
Jobs tagged as export or zero-rated are processed through workflows that enforce invoice rules, document compliance, and customs readiness.
Pricing & Tax Assignment
The system assigns a 0% tax rate during invoicing while retaining tax codes for visibility, traceability, and regulatory reporting.
Carrier & Partner Mapping
Some carriers or trade partners may require zero-rated billing formats, and ERP aligns these based on predefined zone or contract settings.
Performance Insights by Zone
ERP tracks the volume and value of zero-rated invoices by region, client, or job type to assist in compliance and financial planning.
Conclusion
Zero-rated invoices in ERP logistics ensure that tax-exempt transactions are correctly processed, tracked, and reported. By automating tax handling and embedding regulatory codes, ERP systems help logistics businesses stay compliant, audit-ready, and accurate in their tax filings, especially for exports and government-exempted services.