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Fatal: fails the selected checks

BR-E-05: Exempt items must have a VAT rate of 0 (line)

In short

BR-E-05 means an invoice line has VAT category E (exempt from VAT) but a VAT rate other than 0. Fix it by setting the rate to 0, or by choosing a different category if VAT is in fact charged.

On this page

What it means

When an invoice line has VAT category E (exempt from VAT), its VAT rate (BT-152) must be 0 (zero).

Why it matters

No VAT is charged in this category, so a rate above zero contradicts the category and makes the VAT figures unreliable. The invoice is rejected.

How to fix it

In your invoicing software, open the item or the line and check its VAT setting. Keep category E with rate 0. If the item does carry VAT, switch it to the standard rate (S) or the reduced rate that applies.

The rule as published

In an Invoice line (BG-25) where the Invoiced item VAT category code (BT-151) is "Exempt from VAT", the Invoiced item VAT rate (BT-152) shall be 0 (zero).

Business terms: BG-25, BT-151, BT-152

Where this rule applies

Rule set Version
EN 16931 (UBL) 1.3.17
EN 16931 (UBL credit note) 1.3.17
EN 16931 (CII) 1.3.17
XRechnung 3.0 (UBL) 3.0.2
XRechnung 3.0 (UBL credit note) 3.0.2
XRechnung 3.0 (CII) 3.0.2
Peppol BIS Billing 3.0 (invoice) 2026.5
Peppol BIS Billing 3.0 (credit note) 2026.5
Factur-X 1.09 BASIC 1.0.9-2
Factur-X 1.09 EN 16931 1.0.9-2
Factur-X 1.09 EXTENDED 1.0.9-2
ZUGFeRD 2.5 BASIC 2.5.2
ZUGFeRD 2.5 EN 16931 2.5.2
ZUGFeRD 2.5 EXTENDED 2.5.2
SI-UBL 2.0 / NLCIUS (invoice) 2.0.3.13
SI-UBL 2.0 / NLCIUS (credit note) 2.0.3.13
NLCIUS (CII) 1.0.3.13
France CTC (UBL invoice) 1.4.0-04
France CTC (UBL credit note) 1.4.0-04
France CTC (CII) 1.4.0-04
CIUS-RO UBL Invoice 1.0.9 1.0.9
CIUS-RO UBL Credit Note 1.0.9 1.0.9
Rule text from phive-rules 4.6.4.

Check your file

Drop your e-invoice to see whether BR-E-05 still fails, and which other rules do.