BR-E-01: Exempt items need a matching VAT breakdown entry

What it means

When an invoice line (BT-151), a discount on the whole invoice (BT-95) or a charge on the whole invoice (BT-102) uses VAT category E (exempt from VAT), the VAT breakdown (BG-23) must contain exactly one entry with category code E (BT-118).

Why it matters

The VAT breakdown is the summary of VAT per category and rate that the buyer books and the tax authority checks. If a category used on the lines is missing from it, the VAT on the invoice cannot be reconciled and the invoice is rejected.

How to fix it

Look at the VAT summary at the bottom of the invoice. Add the missing E row with the total of the amounts in that category, the rate and the VAT amount. There may only be one such row. Invoicing software normally builds this table from the lines, so a gap usually means a line was edited by hand or given the wrong category.

The rule as published

An Invoice that contains an Invoice line (BG-25), a Document level allowance (BG-20) or a Document level charge (BG-21) where the VAT category code (BT-151, BT-95 or BT-102) is "Exempt from VAT" shall contain exactly one VAT breakdown (BG-23) with the VAT category code (BT-118) equal to "Exempt from VAT".

Business terms: BG-20, BG-21, BG-23, BG-25, BT-95, BT-102, BT-118, BT-151

Where this rule applies