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BR-E-10: VAT exemption reason for category E is missing

Official message

[BR-E-10] A VAT Breakdown (BG-23) with VAT Category code (BT-118) "Exempt from VAT" shall have a VAT exemption reason code (BT-121) or a VAT exemption reason text (BT-120).

EN 16931 (CII) · Error · Message language: English · Version: xrechnung-3.0.2-validator-configuration-2026-08-31

[BR-E-10] A VAT breakdown (BG-23) with VAT Category code (BT-118) "Exempt from VAT" shall have a VAT exemption reason code (BT-121) or a VAT exemption reason text (BT-120).

EN 16931 (UBL) · Error · Message language: English · Version: xrechnung-3.0.2-validator-configuration-2026-08-31

[BR-E-10] A VAT Breakdown (BG-23) with VAT Category code (BT-118) "Exempt from VAT" shall have a VAT exemption reason code (BT-121) or a VAT exemption reason text (BT-120).

Factur-X / ZUGFeRD EN 16931 · Error · Message language: English · Version: Factur-X 1.08 / ZUGFeRD 2.4
Severity
Error The invoice is invalid and may be rejected by the recipient.
Applies to
EN 16931 (CII), EN 16931 (UBL), Factur-X / ZUGFeRD EN 16931
Affected fields
BG-23, BT-118, BT-121, BT-120

What does this mean?

A VAT breakdown (BG-23) with category E (Exempt from VAT) must contain a VAT exemption reason code (BT-121) or a VAT exemption reason text (BT-120). Both are missing.

Typical causes

The breakdown was generated from the lines without taking over an exemption reason.
The exemption reason only appears in an invoice note.

How to fix the error

State a code from the VATEX code list (BT-121) or a text (BT-120) giving the reason for the exemption in the breakdown of category E.
Possible codes are e.g. those for exemptions under Council Directive 2006/112/EC (VATEX-EU-132 …, VATEX-EU-143 …); according to the code list VATEX-EU-D, -F, -I and -J are only to be used with category E.
CII: ram:ExemptionReason and ram:ExemptionReasonCode in ram:ApplicableHeaderTradeSettlement/ram:ApplicableTradeTax, UBL: cbc:TaxExemptionReason and cbc:TaxExemptionReasonCode in cac:TaxTotal/cac:TaxSubtotal/cac:TaxCategory.

In E-Rechnungsfreund

In the invoice form, "Experte" view, section "Steueraufstellung (BG-23)" (VAT breakdown), create an entry with "Kategorie (BT-118)" E and the same "Satz % (BT-119)" as the lines (0) and fill in "Befreiungsgrund (BT-120)" (exemption reason) or "Befr.-Code (BT-121)" (exemption reason code). The exemption reason is only used if category and rate match. With profile XRechnung the form additionally requires for this entry the seller's VAT identifier or local tax registration identifier, or the tax representative's VAT identifier (BR-E-02); no identifier is required from the buyer.
In the simple view ("Einfach") the VAT breakdown is recalculated when saving and an exemption reason is cleared unless "Manuelle Steueraufstellung verwenden" (use manual VAT breakdown) was selected in the "Experte" view.

Example

Wrong

<ram:ApplicableTradeTax>
  <ram:CalculatedAmount>0.00</ram:CalculatedAmount>
  <ram:TypeCode>VAT</ram:TypeCode>
  <ram:BasisAmount>1000.00</ram:BasisAmount>
  <ram:CategoryCode>E</ram:CategoryCode>
  <ram:RateApplicablePercent>0</ram:RateApplicablePercent>
</ram:ApplicableTradeTax>

Correct

<ram:ApplicableTradeTax>
  <ram:CalculatedAmount>0.00</ram:CalculatedAmount>
  <ram:TypeCode>VAT</ram:TypeCode>
  <ram:BasisAmount>1000.00</ram:BasisAmount>
  <ram:CategoryCode>E</ram:CategoryCode>
  <ram:ExemptionReasonCode>VATEX-EU-132</ram:ExemptionReasonCode>
  <ram:RateApplicablePercent>0</ram:RateApplicablePercent>
</ram:ApplicableTradeTax>
For developers: test expression per syntax

EN 16931 (CII) (CII)

Context: //rsm:SupplyChainTradeTransaction/ram:ApplicableHeaderTradeSettlement/ram:ApplicableTradeTax/ram:CategoryCode[. = 'E'][upper-case(../ram:TypeCode) = 'VAT']

(../ram:ExemptionReason) or (../ram:ExemptionReasonCode)

EN 16931 (UBL) (UBL)

Context: /*/cac:TaxTotal/cac:TaxSubtotal/cac:TaxCategory[normalize-space(cbc:ID) = 'E'][cac:TaxScheme/normalize-space(upper-case(cbc:ID))='VAT']

exists(cbc:TaxExemptionReason) or exists(cbc:TaxExemptionReasonCode)

Factur-X / ZUGFeRD EN 16931 (CII)

Technical ID in the source: FX-SCH-A-000139

Context: //rsm:SupplyChainTradeTransaction/ram:ApplicableHeaderTradeSettlement/ram:ApplicableTradeTax/ram:CategoryCode[. = 'E']

(../ram:ExemptionReason) or (../ram:ExemptionReasonCode)

Related validation rules

  • BR-E-01: Not exactly one VAT breakdown for category E
  • BR-E-02: Seller VAT or tax registration identifier missing for invoice line with category E
  • BR-E-03: Seller VAT or tax registration identifier missing for document level allowance with category E
  • BR-E-04: Seller VAT or tax registration identifier missing for document level charge with category E
  • BR-E-05: VAT rate of invoice line with category E is not 0
  • BR-E-06: VAT rate of document level allowance with category E is not 0

Last updated:
Explanation of the validation rule, not legal or tax advice.