BR-CL-18: VAT categories of invoice lines must come from UNCL 5305

What it means

Every VAT category code on an invoice line (BT-151) must be one of S (standard rate), Z (zero rated), E (exempt), AE (reverse charge), K (intra-community supply), G (export outside the EU), O (outside the scope of VAT), L (Canary Islands), M (Ceuta and Melilla) or B (Italian split payment). A percentage such as 19 or a word such as "VAT" is not a category.

Why it matters

Codes are read by software, not by people. A value outside the agreed code list cannot be interpreted, so the recipient's system rejects the invoice even when the value looks sensible to a person.

How to fix it

Choose the VAT treatment from the list in your invoicing software rather than typing it; the rate goes in its own field. If you build the XML yourself, write the letter code, for example S, in cac:ClassifiedTaxCategory/cbc:ID of the line (UBL).

The rule as published

Invoice tax categories MUST be coded using UNCL5305 code list

Where this rule applies