# BR-E-07

> In a Document level charge (BG-21) where the Document level charge VAT category code (BT-102) is "Exempt from VAT", the Document level charge VAT rate (BT-103) shall be 0 (zero).

Checked against Peppol BIS Billing 3.0 2026.5

Canonical: https://einvoicecheck.eu/rules/br-e-07

## Official rule text

In a Document level charge (BG-21) where the Document level charge VAT category code (BT-102) is "Exempt from VAT", the Document level charge VAT rate (BT-103) shall be 0 (zero).

## Why did my invoice fail BR-E-07?

When a document-level charge (BG-21) uses the VAT category code 'Exempt from VAT' (code E) in BT-102, its VAT rate BT-103 must be exactly 0. As exempt items are outside the scope of VAT charging, a non-zero percentage is not permitted.

## Common causes

- BT-103 (cbc:Percent) omitted entirely on an exempt charge; a missing value is not read as 0.
- A positive rate carried over from a standard-rated charge template.
- Wrong category assignment: charge marked E instead of S.
- Rounding or defaulting logic that injects a non-zero rate.

## How do I fix it?

```
In the charge's cac:TaxCategory use <cbc:ID>E</cbc:ID> and <cbc:Percent>0</cbc:Percent>.
```