BR-IP-10: Remove exemption reasons from IPSI or IGIC entries

What it means

For a UBL VAT breakdown entry (BG-23) with category M under tax scheme VAT (BT-118), neither cbc:TaxExemptionReason nor cbc:TaxExemptionReasonCode may be present within cac:TaxCategory. An empty element still fails the test. These elements represent BT-120 and BT-121 respectively. The CII wording applies the same prohibition to IGIC entries.

Why it matters

Exemption-reason fields are not permitted in these category entries. A zero rate alone does not make an entry an exempt-from-VAT entry.

How to fix it

Check the affected VAT breakdown entry. If its category is correct, remove both exemption-reason fields from the structured data. In UBL, delete the elements rather than leaving empty tags. If the category is wrong, correct BT-118 and any related line, discount or charge categories to reflect the transaction. Do not switch to category E solely to clear this error. Recheck your corrected file.

The rule as published

A VAT breakdown (BG-23) with VAT Category code (BT-118) "IPSI" shall not have a VAT exemption reason code (BT-121) or VAT exemption reason text (BT-120).

Where EN 16931 (CII), XRechnung 3.0 (CII), France CTC (CII) run it, the rule reads:

A VAT Breakdown (BG-23) with VAT Category code (BT-118) "IGIC" shall not have a VAT exemption reason code (BT-121) or VAT exemption reason text (BT-120).

Business terms: BG-23, BT-118, BT-120, BT-121

Where this rule applies