# BR-IC-10

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

Checked against Peppol BIS Billing 3.0 2026.5

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

## Official rule text

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

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

A VAT breakdown (BG-23) with VAT category code (BT-118) "K" (Intra-community supply) must state a justification via a VAT exemption reason code (BT-121) meaning intra-community supply, or a VAT exemption reason text (BT-120) to that effect. This documents to the tax authority why the supply carries no VAT.

## Common causes

- K breakdown emitted with neither TaxExemptionReasonCode nor TaxExemptionReason.
- Using a VATEX code that does not correspond to intra-community supply.
- Exemption reason text left empty or generic (e.g. "exempt") without the intra-community meaning.
- Reason provided only on lines, not in the VAT breakdown (BG-23).

## How do I fix it?

```
Add to the K TaxCategory: <cbc:TaxExemptionReasonCode>VATEX-EU-IC</cbc:TaxExemptionReasonCode> or <cbc:TaxExemptionReason>Intra-community supply</cbc:TaxExemptionReason>.
```