BR-47: VAT category code is required

What it means

Every line of the VAT breakdown (BG-23) must contain the VAT category code (BT-118). It is a letter code from UNCL 5305, for example S for the standard rate, Z for zero rated, E for exempt or AE for reverse charge.

Why it matters

The VAT breakdown is what the buyer uses to reclaim VAT and what a tax authority checks. Each line of it must be complete, or the invoice is rejected.

How to fix it

Choose a VAT rate or VAT category for every line in your invoicing software; it then fills in the category in each line of the breakdown. If you build the XML yourself, add cac:TaxCategory/cbc:ID (UBL) or ram:CategoryCode (CII) to each breakdown entry.

The rule as published

Each VAT breakdown (BG-23) shall be defined through a VAT category code (BT-118).

Business terms: BG-23, BT-118

Where this rule applies