Reference

BR-48 VAT breakdown category rate is required unless not subject to VAT

Each VAT breakdown (BG-23) shall have a VAT category rate (BT-119), except if the Invoice is not subject to VAT.

This is an EN 16931 core rule. The rate (BT-119) is needed to check that the VAT amount matches the taxable amount. Only category O (not subject to VAT) has no rate; for E, Z, AE, K and G the rate is 0. The error often appears when an export leaves the rate out for exempt or reverse-charge sales instead of writing 0.

Solution

Add cac:TaxCategory/cbc:Percent (CII: ram:RateApplicablePercent) to each VAT subtotal; use 0 for exempt, zero-rated or reverse-charge categories, and omit it only for category O (not subject to VAT).

Quick actions

Validate XML Convert invoice

Valid Examples

BT-119 = 19 for standard rate
BT-119 = 0 for an exempt category

Invalid Examples

Standard-rate VAT subtotal with no BT-119 rate

Code Examples

Valid XML

<cac:TaxSubtotal>
  <cbc:TaxableAmount currencyID="EUR">100.00</cbc:TaxableAmount>
  <cbc:TaxAmount currencyID="EUR">19.00</cbc:TaxAmount>
  <cac:TaxCategory>
    <cbc:ID>S</cbc:ID>
    <cbc:Percent>19</cbc:Percent>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:TaxCategory>
</cac:TaxSubtotal>

Invalid XML

<cac:TaxSubtotal>
  <cbc:TaxableAmount currencyID="EUR">100.00</cbc:TaxableAmount>
  <cbc:TaxAmount currencyID="EUR">19.00</cbc:TaxAmount>
  <cac:TaxCategory>
    <cbc:ID>S</cbc:ID>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:TaxCategory>
</cac:TaxSubtotal>