BR-CL-22: VAT exemption reason codes must come from the VATEX list

What it means

When the VAT breakdown gives a VAT exemption reason code (BT-121), it must be a code from the European VATEX list, for example VATEX-EU-AE for reverse charge, VATEX-EU-IC for an intra-community supply, VATEX-EU-G for export or VATEX-EU-132-1A for a specific exemption article.

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 exemption reason from the list in your invoicing software, or leave the code out and give the reason as text. Write the code exactly, in capitals with hyphens, such as VATEX-EU-IC. In the XML it is cbc:TaxExemptionReasonCode (UBL) or ram:ExemptionReasonCode (CII).

The rule as published

Tax exemption reason code identifier scheme identifier MUST belong to the CEF VATEX code list

Where this rule applies