BR-NL-35: Leave out the VAT exemption reason code

What it means

A row of the VAT breakdown (BG-23) has a VAT exemption reason code (BT-121). The warning appears whenever the code is present, whatever it says.

Why it matters

This is a warning, so the invoice is not rejected. The Dutch profile asks you not to use the code, so you cannot count on the recipient's software to read it. The reason in words (BT-120) is what a person and the tax authority can read.

How to fix it

Remove the reason code and fill in the VAT exemption reason text (BT-120) instead, for example the legal basis or a short description of why no VAT is charged. Categories such as exempt from VAT, reverse charge and intra-community supply need a reason, and the text on its own is enough. It is worth fixing if you want a clean check, and you can otherwise leave it.

The rule as published

The use of a tax exemption reason code (cac:TaxTotal/cac:TaxSubtotal/cac:TaxCategory/cbc:TaxExemptionReasonCode) is not recommended

Where this rule applies