PEPPOL-EN16931-P0108

Layer peppol·Checked against Peppol BIS Billing 3.0 2026.5

What does PEPPOL-EN16931-P0108 mean? Tax Category E MUST be used when exemption reason code is VATEX-EU-D

Why did my invoice fail PEPPOL-EN16931-P0108?

If the exemption reason code VATEX-EU-D (second-hand/margin scheme related exemption under the VAT Directive) is used, the tax category code must be E (exempt from tax). The rule enforces a consistent category/reason pairing.

Official rule text

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

Common causes

Category Z (zero rated) used instead of E
Reason code VATEX-EU-D combined with a standard-rated (S) category
Copy-paste of an exemption reason onto the wrong tax breakdown

How do I fix it?

<cac:TaxCategory><cbc:ID>E</cbc:ID><cbc:Percent>0</cbc:Percent><cbc:TaxExemptionReasonCode>VATEX-EU-D</cbc:TaxExemptionReasonCode><cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme></cac:TaxCategory>

Check your invoice against this rule

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