Reference

BR-E-06 Exempt document allowance VAT rate must be zero

In a document level allowance (BG-20) where the document level allowance VAT category code (BT-95) is "Exempt from VAT" (E), the document level allowance VAT rate (BT-96) shall be 0 (zero).

An exempt supply carries no VAT, so every exempt allowance must have a rate of 0 for category E to stay consistent. In practice, the error occurs when a discount on exempt lines is exported with the rate of the taxed lines.

Solution

Set the exempt allowance cac:TaxCategory/cbc:Percent (BT-96) to 0; an exempt supply carries no VAT.

Quick actions

Validate XML Convert invoice

Valid Examples

Exempt allowance with BT-95 = E and BT-96 = 0

Invalid Examples

Exempt allowance with BT-95 = E but BT-96 = 19

Code Examples

Valid XML

<cac:AllowanceCharge>
  <cbc:ChargeIndicator>false</cbc:ChargeIndicator>
  <cbc:Amount currencyID="EUR">40.00</cbc:Amount>
  <cac:TaxCategory>
    <cbc:ID>E</cbc:ID>
    <cbc:Percent>0</cbc:Percent>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:TaxCategory>
</cac:AllowanceCharge>

Invalid XML

<cac:AllowanceCharge>
  <cbc:ChargeIndicator>false</cbc:ChargeIndicator>
  <cbc:Amount currencyID="EUR">40.00</cbc:Amount>
  <cac:TaxCategory>
    <cbc:ID>E</cbc:ID>
    <cbc:Percent>19</cbc:Percent>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:TaxCategory>
</cac:AllowanceCharge>