Rules / BR-O-10 · Markdown

BR-O-10

EN 16931-1 layer: en16931

Checked against Peppol BIS Billing 3.0 2026.5

What does BR-O-10 mean? A VAT breakdown (BG-23) with VAT Category code (BT-118) " Not subject to VAT" shall have a VAT exemption reason code (BT-121), meaning " Not subject to VAT" or a VAT exemption reason text (BT-120) " Not subject to VAT" (or the equivalent standard text in another language).

Why did my invoice fail BR-O-10?

A VAT breakdown (BG-23) with category code 'O' (Not subject to VAT) must justify the treatment by providing either a VAT exemption reason code (BT-121) meaning 'Not subject to VAT' or a VAT exemption reason text (BT-120) stating the same. This forces the invoice to explain why no VAT applies to the out-of-scope amounts.

Official rule text

A VAT breakdown (BG-23) with VAT Category code (BT-118) " Not subject to VAT" shall have a VAT exemption reason code (BT-121), meaning " Not subject to VAT" or a VAT exemption reason text (BT-120) " Not subject to VAT" (or the equivalent standard text in another language).

Common causes

• The 'O' TaxSubtotal/TaxCategory has neither cbc:TaxExemptionReason nor cbc:TaxExemptionReasonCode.
• An exemption reason was placed on the wrong (e.g. 'E') category subtotal.
• Only a free-text reason unrelated to 'Not subject to VAT' was supplied.
• The reason code used is not a recognised code meaning 'Not subject to VAT'.

How do I fix it?

Add a reason to the O category: <cac:TaxCategory><cbc:ID>O</cbc:ID><cbc:TaxExemptionReasonCode>VATEX-EU-O</cbc:TaxExemptionReasonCode><cbc:TaxExemptionReason>Not subject to VAT</cbc:TaxExemptionReason><cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme></cac:TaxCategory>

Related rules

BR-O-01 · BR-O-02 · BR-O-03 · BR-O-04 · BR-O-05 · BR-O-06 · BR-O-07 · BR-O-08