BR-E-10: VAT exemption reason (BT-120) is required for this VAT category

ExampleEN 16931 (UBL)

An invoice built like a valid one, except for this:

<cac:TaxCategory>
  <cbc:ID>E</cbc:ID>
  <cbc:Percent>0.00</cbc:Percent>
  <cac:TaxScheme>
    <cbc:ID>VAT</cbc:ID>
  </cac:TaxScheme>
</cac:TaxCategory>

The validator says: VAT category E has no exemption reason. Give a reason code, a written reason, or both.

Official validation message

This is the official EN 16931 validation message for this rule, quoted verbatim in English from the validation artefacts below. It is not translated: a translation would no longer be the official text.

[BR-E-10]-A VAT breakdown (BG-23) with VAT Category code (BT-118) "Exempt from VAT" shall have a VAT exemption reason code (BT-121) or a VAT exemption reason text (BT-120).

Quoted verbatim and unmodified from the official EN 16931 validation artefacts published by CEN/TC 434, release validation-1.3.16 of April 10, 2026, licensed under the European Union Public Licence v. 1.2. Provided without warranty of any kind, including as to accuracy. Source and licence →

How to fix it

Add a VAT exemption reason code, a written reason, or both, to the VAT breakdown for this category.

Frequently asked questions

What does BR-E-10 mean?

VAT exemption reason (BT-120) is required for this VAT category. The rule runs under EN 16931 (UBL), Peppol BIS 3.0, and XRechnung 3.0 (UBL).

How do I fix BR-E-10?

Add a VAT exemption reason code, a written reason, or both, to the VAT breakdown for this category. In UBL the element is ⁦/Invoice/cac:TaxTotal/cac:TaxSubtotal/cac:TaxCategory/cbc:TaxExemptionReason⁩.