PEPPOL-EN16931-P0105

Layer peppol·Checked against Peppol BIS Billing 3.0 2026.5

What does PEPPOL-EN16931-P0105 mean? Tax Category O MUST be used when exemption reason code is VATEX-EU-O

Why did my invoice fail PEPPOL-EN16931-P0105?

If the exemption reason code VATEX-EU-O (not subject to VAT) is used, the tax category code must be O (services outside scope of tax). The pairing keeps the machine-readable category consistent with the stated exemption reason.

Official rule text

Tax Category O MUST be used when exemption reason code is VATEX-EU-O

Common causes

Using category E (exempt) instead of O with VATEX-EU-O
Supplying a VAT rate in Percent for category O (not allowed)
Reason code left over from a different transaction type

How do I fix it?

<cac:TaxCategory><cbc:ID>O</cbc:ID><cbc:TaxExemptionReasonCode>VATEX-EU-O</cbc:TaxExemptionReasonCode><cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme></cac:TaxCategory>

Check your invoice against this rule

Paste it into the live demo, or call POST /v1/validate. See the quickstart.