# BR-E-09 Exempt VAT category tax amount must be zero

The VAT category tax amount (BT-117) in a VAT breakdown (BG-23) where the VAT category code (BT-118) equals "Exempt from VAT" (E) shall equal 0 (zero).

## Problem Description

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

## Context and Significance

An exempt supply produces no output VAT, so the exempt category VAT amount must be exactly zero and must not contribute to the invoice VAT total. In practice, the error occurs when software applies the standard rate to the E base or copies the tax amount of another breakdown.

## Solution

Set the exempt cac:TaxSubtotal/cbc:TaxAmount (BT-117) to 0.00; an exempt supply generates no VAT.

- [Validate XML](/en/xrechnung-validator?source=resource&rule=BR-E-09)
- [Convert invoice](/en/pdf-to-xrechnung?source=resource&rule=BR-E-09)

## Valid Examples

- Exempt breakdown with BT-118 = E and BT-117 = 0.00

## Invalid Examples

- Exempt breakdown with BT-118 = E but BT-117 = 95.00

## Code Examples

### Valid XML
```
<cac:TaxSubtotal>
  <cbc:TaxableAmount currencyID="EUR">500.00</cbc:TaxableAmount>
  <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
  <cac:TaxCategory>
    <cbc:ID>E</cbc:ID>
    <cbc:Percent>0</cbc:Percent>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:TaxCategory>
</cac:TaxSubtotal>
```

### Invalid XML
```
<cac:TaxSubtotal>
  <cbc:TaxableAmount currencyID="EUR">500.00</cbc:TaxableAmount>
  <cbc:TaxAmount currencyID="EUR">95.00</cbc:TaxAmount>
  <cac:TaxCategory>
    <cbc:ID>E</cbc:ID>
    <cbc:Percent>0</cbc:Percent>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:TaxCategory>
</cac:TaxSubtotal>
```

## Affected Fields

- [BT-117 VAT category tax amount](/resources/xrechnung/bt-117-vat-category-tax-amount)
- [BT-118 VAT category code](/resources/xrechnung/bt-118-vat-category-code)

## Related Rules

- [BR-E-08](/resources/kosit-validator-errors/br-e-08-exempt-taxable-amount-sum)
- [BR-E-10](/resources/kosit-validator-errors/br-e-10-exempt-breakdown-reason-required)
- [BR-E-05](/resources/kosit-validator-errors/br-e-05-exempt-vat-rate-must-be-zero)

## 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.