# BR-E-05 Exempt VAT rate must be zero

VAT category E must use a zero VAT rate on lines and VAT breakdowns.

## Problem Description

VAT category E must use a zero VAT rate on lines and VAT breakdowns.

> **ERROR**: XRechnung 3.0

## Context and Significance

An exempt category with a non-zero rate is contradictory and creates inconsistent tax totals.

## Solution

Set Percent to 0 for category E and keep any taxable base in the exempt VAT breakdown.

- validate
- convert

## Valid Examples

- VAT category E with Percent 0

## Invalid Examples

- VAT category E with Percent 19

## Code Examples

### Valid XML
```
<cac:ClassifiedTaxCategory>
  <cbc:ID>E</cbc:ID>
  <cbc:Percent>0</cbc:Percent>
  <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:ClassifiedTaxCategory>
```

### Invalid XML
```
<cac:ClassifiedTaxCategory>
  <cbc:ID>E</cbc:ID>
  <cbc:Percent>19</cbc:Percent>
  <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:ClassifiedTaxCategory>
```

## Technical Details

### Affected Fields
BT-152 Invoice line VAT rate, BT-119 VAT category rate

## Related Rules

- [BR-E-01](/resources/kosit-validator-errors/br-e-01-exempt-vat-breakdown-required)
- [BR-E-08](#)

## Validation Tools

- [Official KoSIT Validator](https://erechnungsvalidator.service-bw.de/): Validate your XRechnung files against all BR-DE rules.
- [Convert PDF to XRechnung](/pdf-to-xrechnung): Automatic validation error fixes when converting.

## Related Resources

- [Official Specification](https://xeinkauf.de/xrechnung/)
- [Test Suite](https://github.com/itplr-kosit/xrechnung-testsuite)
- [Complete Error List](/resources/kosit-validator-errors): Overview of all German XRechnung validation rules.