# BR-B-01 Split payment is only valid on a domestic Italian invoice

An Invoice where the VAT category code (BT-151, BT-95 or BT-102) is "Split payment" shall be a domestic Italian invoice.

## Problem Description

> **ERROR**: EN 16931 VAT category rule

## Context and Significance

Category B stands for the Italian split payment mechanism (scissione dei pagamenti): the buyer, usually an Italian public body, pays the VAT directly to the Italian treasury and pays the seller only the net amount. The mechanism exists only in Italy. In practice, the error occurs when code B is chosen by mistake, for example for a non-Italian seller or with a delivery address outside Italy.

## Solution

Use category "B" (Split payment) only when every country code on the invoice (cbc:IdentificationCode, including the delivery address and the country of origin of items) is "IT". Otherwise choose the correct VAT category, usually "S".

- [Validate XML](/en/xrechnung-validator?source=resource&rule=BR-B-01)
- [Convert invoice](/en/pdf-to-xrechnung?source=resource&rule=BR-B-01)

## Valid Examples

- Category "B" (Split payment) invoice where all country codes (seller, buyer, delivery) are "IT"

## Invalid Examples

- Category "B" (Split payment) invoice where the seller country code is "DE"

## Code Examples

### Valid XML
```
<cac:AccountingSupplierParty>
  <cac:Party>
    <cac:PostalAddress>
      <cac:Country><cbc:IdentificationCode>IT</cbc:IdentificationCode></cac:Country>
    </cac:PostalAddress>
  </cac:Party>
</cac:AccountingSupplierParty>
<cac:ClassifiedTaxCategory>
  <cbc:ID>B</cbc:ID>
  <cbc:Percent>22.00</cbc:Percent>
  <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:ClassifiedTaxCategory>
```

### Invalid XML
```
<cac:AccountingSupplierParty>
  <cac:Party>
    <cac:PostalAddress>
      <cac:Country><cbc:IdentificationCode>DE</cbc:IdentificationCode></cac:Country>
    </cac:PostalAddress>
  </cac:Party>
</cac:AccountingSupplierParty>
<cac:ClassifiedTaxCategory>
  <cbc:ID>B</cbc:ID>
  <cbc:Percent>22.00</cbc:Percent>
  <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:ClassifiedTaxCategory>
```

## Affected Fields

- [BT-151 Invoiced item VAT category code](/resources/xrechnung/bt-151-invoice-line-vat-category-code)
- [BT-40 Seller country code](/resources/xrechnung/bt-40-seller-country-code)
- [BT-55 Buyer country code](/resources/xrechnung/bt-55-buyer-country-code)

## Related Rules

- [BR-B-02](/resources/kosit-validator-errors/br-b-02-split-payment-excludes-standard-rated)

## 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.