BR-E-10
EN 16931-1 layer: en16931
Checked against Peppol BIS Billing 3.0 2026.5
What does BR-E-10 mean? 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).
Why did my invoice fail BR-E-10?
Any VAT breakdown group (BG-23) with category code (BT-118) 'Exempt from VAT' must state why it is exempt, via either a VAT exemption reason code (BT-121) or a VAT exemption reason text (BT-120). This forces the invoice to justify the exemption for tax-audit purposes.
Official rule text
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).
Common causes
- Category set to E but neither the exemption reason code nor text supplied.
- Reason text placed at the wrong level instead of on the exempt TaxCategory.
- Empty string sent for the reason text, which does not satisfy the requirement.
- Using code E when the correct category (e.g. Z zero-rated, O out of scope) needs no reason.
How do I fix it?
In the exempt cac:TaxCategory add <cbc:TaxExemptionReason>Exempt under Article 132 VAT Directive</cbc:TaxExemptionReason> (or a cbc:TaxExemptionReasonCode).
Related rules
BR-E-01 · BR-E-02 · BR-E-03 · BR-E-04 · BR-E-05 · BR-E-06 · BR-E-07 · BR-E-08
Check your invoice against this rule
Paste it into the live demo, or call POST /v1/validate. See the quickstart.