# BR-G-10

> A VAT breakdown (BG-23) with the VAT Category code (BT-118) "Export outside the EU" shall have a VAT exemption reason code (BT-121), meaning "Export outside the EU" or the VAT exemption reason text (BT-120) "Export outside the EU" (or the equivalent standard text in another language).

Checked against Peppol BIS Billing 3.0 2026.5

Canonical: https://einvoicecheck.eu/rules/br-g-10

## Official rule text

A VAT breakdown (BG-23) with the VAT Category code (BT-118) "Export outside the EU" shall have a VAT exemption reason code (BT-121), meaning "Export outside the EU" or the VAT exemption reason text (BT-120) "Export outside the EU" (or the equivalent standard text in another language).

## Why did my invoice fail BR-G-10?

A VAT breakdown (BG-23) with VAT category code (BT-118) "G" (Export outside the EU) must justify the zero rate by carrying either a VAT exemption reason code (BT-121) meaning export outside the EU, or a VAT exemption reason text (BT-120) stating so. This gives the tax authority a documented reason why no VAT was applied.

## Common causes

- Emitting the category G breakdown with no TaxExemptionReasonCode and no TaxExemptionReason text.
- Providing an exemption reason code from the wrong code list (VATEX) that does not correspond to export.
- Leaving the reason text empty or whitespace-only.
- Populating the reason only at line level and not in the VAT breakdown (BG-23).

## How do I fix it?

```
Add an exemption reason to the category G TaxCategory in the breakdown: <cbc:TaxExemptionReasonCode>VATEX-EU-G</cbc:TaxExemptionReasonCode> or <cbc:TaxExemptionReason>Export outside the EU</cbc:TaxExemptionReason>.
```