E-Invoice Error Code - CF366

Tax Exemption Reason is Required When Sending E-Invoice

Product: ABSS Accounting Connect / ABSS Premier Connect

Module: E-Invoice LHDN Submission

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Symptom

When attempting to send an e-invoice via ABSS Accounting Connect / Premier Connect, the submission is rejected by LHDN with the following error:

Code: CF366

Message: Tax exemption reason is required

Target: LineItem_SubTotal_TaxExemptionReason

Property Path:

Invoice.InvoiceLine[n].TaxTotal[0].TaxSubtotal[0].TaxCategory.TaxExemptionReason

Details:

This error may appear on one or more invoice lines.

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Root Cause

The error occurs when invoice lines use an exempted tax code (Tax Type = "E") but the Tax Exemption Detail field is left empty - at both the Item level and the Customer Card level.

ABSS Connect follows this logic when resolving tax exemption details for the payload sent to LHDN:

Default Behavior

• For Service Layout transactions: the tax exemption detail is taken from Customer Card screen.
• For Item Layout transactions: the tax exemption detail is taken from the Item Information screen.

Override Condition (higher priority)

• If the transaction is a Sales transaction AND uses a valid exemption tax code, the system takes the tax exemption detail from the Card Information screen - but only if the field is not empty.

When both sources are empty:

• Item-level exemption reason = empty
• Card-level exemption reason = empty

Tax exemption reason is excluded from the LHDN payload → CF366 validation failure

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Resolution (User Action)

Before submitting the e-invoice to LHDN, ensure the Tax Exemption Detail is properly populated in at least one of the following locations:

For Sales transactions using a valid exemption tax code:

1. Go to the Card Information screen (Customer record).
2. Populate the Tax Exemption field.
3. This value will override the item-level value during submission.

For Item Layout transactions:

1. Go to the Item Information screen.
2. For each item using Tax Type "E" (Exempt), enter the appropriate Tax Exemption Detail.

After updating, re-submit the e-invoice.