BR-E-10
Validation message
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).
Explanation
An invoice with exempt amounts must state why no VAT is charged: in the 'exempt from VAT' entry of the VAT breakdown, as a text, as a code from the VATEX list, or both. The EN 16931 standard requires it, and VAT law also requires a reference to the exemption.
How to fix
Ask the seller for a corrected invoice that states the reason for the exemption, for example the provision that applies, such as 'Exempt under Article 132 of the VAT Directive'.
This field is required by §14 Abs. 4 Nr. 8 UStG. A missing or incorrect value may affect input VAT deduction (Vorsteuerabzug) for the recipient.
Applies to
- EN 16931 (UBL)
- EN 16931 (CII)