BR-O-13: On an invoice outside VAT, every discount must be category O

What it means

An invoice whose VAT breakdown (BG-23) contains category O (not subject to VAT) must not contain a discount on the whole invoice whose VAT category code (BT-95) is anything other than O.

Why it matters

An invoice is either outside the VAT system or it is not. A single item with a VAT category on an invoice outside VAT contradicts the rest, so the invoice is rejected.

How to fix it

Open the discount in your invoicing software and set its VAT category to "not subject to VAT", like the rest of the invoice. If it really carries VAT, move it to a separate invoice. Discounts and charges such as shipping are easily left on a default VAT category.

The rule as published

An Invoice that contains a VAT breakdown group (BG-23) with a VAT category code (BT-118) "Not subject to VAT" shall not contain Document level allowances (BG-20) where Document level allowance VAT category code (BT-95) is not "Not subject to VAT".

Business terms: BG-20, BG-23, BT-95, BT-118

Where this rule applies