BR-O-03: Amounts outside VAT cannot carry VAT numbers (discount)

What it means

When a discount on the whole invoice has VAT category O (not subject to VAT, BT-95), the invoice must not contain the seller's VAT identifier (BT-31), the VAT identifier of the seller's tax representative (BT-63) or the buyer's VAT identifier (BT-48).

Why it matters

Category O is meant for invoices that fall entirely outside the VAT system, such as those of a seller who is not registered for VAT. A VAT number on the same invoice says the opposite, so the recipient cannot tell how to treat it and rejects it.

How to fix it

If you are not registered for VAT, remove the VAT numbers from your company details and from the customer, or turn off printing them, and export again. If you are registered for VAT, category O is probably wrong: use E (exempt), Z (zero rated), AE (reverse charge) or the standard rate instead.

The rule as published

An Invoice that contains a Document level allowance (BG-20) where the Document level allowance VAT category code (BT-95) is "Not subject to VAT" shall not contain the Seller VAT identifier (BT-31), the Seller tax representative VAT identifier (BT-63) or the Buyer VAT identifier (BT-48).

Business terms: BG-20, BT-31, BT-48, BT-63, BT-95

Where this rule applies