# 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.

## Problem Description

> **ERROR**: EN 16931 core business rule (CEN)

## Context and Significance

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).

- [Validate XML](/en/xrechnung-validator?source=resource&rule=BR-48)
- [Convert invoice](/en/pdf-to-xrechnung?source=resource&rule=BR-48)

## 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>
```

## Affected Fields

- [BT-119 VAT category rate](/resources/xrechnung/bt-119-vat-category-rate)

## Related Rules

- [BR-45](/resources/kosit-validator-errors/br-45-vat-breakdown-taxable-amount-required)
- [BR-46](/resources/kosit-validator-errors/br-46-vat-breakdown-tax-amount-required)

## Validation Tools

- [Official KoSIT Validator](https://github.com/itplr-kosit/validator): Run the official KoSIT validator with the XRechnung configuration to check EN 16931 and XRechnung rules.
- [Convert PDF to XRechnung](/pdf-to-xrechnung): Find validation errors during conversion and review each correction.

## Related Resources

- [Official Specification](https://docs.peppol.eu/poacc/billing/3.0/rules/ubl-tc434/)
- [Test Suite](https://github.com/itplr-kosit/xrechnung-testsuite)
- [All validation errors](/resources/kosit-validator-errors): Overview of the EN 16931, XRechnung and Peppol validation rules explained here.