Merge pull request #49085 from frappe/mergify/bp/version-15-hotfix/pr-48730

fix(regional-uae): mark export items as zero rated (backport #48730)

erpnext/patches.txt

@@ -419,3 +419,4 @@ erpnext.patches.v15_0.remove_sales_partner_from_consolidated_sales_invoice
 erpnext.patches.v15_0.repost_gl_entries_with_no_account_subcontracting #2025-08-04
 execute:frappe.db.set_single_value("Accounts Settings", "fetch_valuation_rate_for_internal_transaction", 1)
 erpnext.patches.v15_0.add_company_payment_gateway_account
+erpnext.patches.v15_0.update_uae_zero_rated_fetch

erpnext/patches/v15_0/update_uae_zero_rated_fetch.py

@@ -0,0 +1,10 @@
+import frappe
+
+from erpnext.regional.united_arab_emirates.setup import make_custom_fields
+
+
+def execute():
+	if not frappe.db.get_value("Company", {"country": "United Arab Emirates"}):
+		return
+
+	make_custom_fields()

erpnext/regional/report/uae_vat_201/uae_vat_201.py

@@ -143,7 +143,7 @@ def get_total_emiratewise(filters):
 			on
 				i.parent = s.name
 			where
-				s.docstatus = 1 and  i.is_exempt != 1 and i.is_zero_rated != 1
+				s.docstatus = 1 and i.is_exempt != 1 and i.is_zero_rated != 1
 				{conditions}
 			group by
 				s.vat_emirate;

erpnext/regional/united_arab_emirates/setup.py

@@ -20,6 +20,7 @@ def make_custom_fields():
 		label="Is Zero Rated",
 		fieldtype="Check",
 		fetch_from="item_code.is_zero_rated",
+		fetch_if_empty=1,
 		insert_after="description",
 		print_hide=1,
 	)

erpnext/regional/united_arab_emirates/utils.py

@@ -7,10 +7,6 @@ from erpnext.controllers.taxes_and_totals import get_itemised_tax
 
 
 def update_itemised_tax_data(doc):
-	# maybe this should be a standard function rather than a regional one
-	if not doc.taxes:
-		return
-
 	if not doc.items:
 		return
 
@@ -20,6 +16,29 @@ def update_itemised_tax_data(doc):
 
 	itemised_tax = get_itemised_tax(doc.taxes)
 
+	def determine_if_export(doc):
+		if doc.doctype != "Sales Invoice":
+			return False
+
+		if not doc.customer_address:
+			if not doc.total_taxes_and_charges:
+				frappe.msgprint(
+					_("Please set Customer Address to determine if the transaction is an export."),
+					alert=True,
+				)
+
+			return False
+
+		company_country = frappe.get_cached_value("Company", doc.company, "country")
+		customer_country = frappe.db.get_value("Address", doc.customer_address, "country")
+
+		if company_country != customer_country:
+			return True
+
+		return False
+
+	is_export = determine_if_export(doc)
+
 	for row in doc.items:
 		tax_rate, tax_amount = 0.0, 0.0
 		# dont even bother checking in item tax template as it contains both input and output accounts - double the tax rate
@@ -30,6 +49,9 @@ def update_itemised_tax_data(doc):
 				tax_amount += flt((row.net_amount * _tax_rate) / 100, row.precision("tax_amount"))
 				tax_rate += _tax_rate
 
+		if not tax_rate or row.get("is_zero_rated"):
+			row.is_zero_rated = is_export or frappe.get_cached_value("Item", row.item_code, "is_zero_rated")
+
 		row.tax_rate = flt(tax_rate, row.precision("tax_rate"))
 		row.tax_amount = flt(tax_amount, row.precision("tax_amount"))
 		row.total_amount = flt((row.net_amount + row.tax_amount), row.precision("total_amount"))