# BR-E-05

> In an Invoice line (BG-25) where the Invoiced item VAT category code (BT-151) is "Exempt from VAT", the Invoiced item VAT rate (BT-152) shall be 0 (zero).

Checked against Peppol BIS Billing 3.0 2026.5

Canonical: https://einvoicecheck.eu/rules/br-e-05

## Official rule text

In an Invoice line (BG-25) where the Invoiced item VAT category code (BT-151) is "Exempt from VAT", the Invoiced item VAT rate (BT-152) shall be 0 (zero).

## Why did my invoice fail BR-E-05?

On any invoice line (BG-25) whose Invoiced item VAT category code (BT-151) is "Exempt from VAT" (E), the Invoiced item VAT rate (BT-152) must be exactly 0. An exempt supply carries no VAT, so any non-zero rate would contradict the exemption and break VAT breakdown reconciliation.

## Common causes

- Leaving a standard rate (e.g. 19 or 20) on a line marked category E
- Copying the rate from a non-exempt template line
- Mapping exemption but forgetting to reset ClassifiedTaxCategory/Percent to 0

## How do I fix it?

```
Set the line VAT rate to 0: <cac:Item><cac:ClassifiedTaxCategory><cbc:ID>E</cbc:ID><cbc:Percent>0</cbc:Percent><cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme></cac:ClassifiedTaxCategory></cac:Item>
```