Reference

BR-G-05 Export line VAT rate must be zero

In an invoice line (BG-25) where the invoiced item VAT category code (BT-151) is "Export outside the EU" (G), the invoiced item VAT rate (BT-152) shall be 0 (zero).

Exports of goods outside the EU are exempt from VAT under Article 146 of the VAT Directive 2006/112/EC; no VAT is charged, so the rate on a category G line must be 0. Do not confuse this with category O (not subject to VAT). In practice, the error occurs when the item master keeps its domestic rate, for example 19 %, after the line is switched to category G.

Solution

Set the ClassifiedTaxCategory/cbc:Percent (BT-152) to 0 on every line that uses category G.

Quick actions

Validate XML Convert invoice

Valid Examples

G line for goods shipped to the United Kingdom (GB) with BT-152 = 0

Invalid Examples

G line to the United Kingdom (GB) with BT-152 = 19

Code Examples

Valid XML

<cac:Item>
  <cac:ClassifiedTaxCategory>
    <cbc:ID>G</cbc:ID>
    <cbc:Percent>0</cbc:Percent>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:ClassifiedTaxCategory>
</cac:Item>

Invalid XML

<cac:Item>
  <cac:ClassifiedTaxCategory>
    <cbc:ID>G</cbc:ID>
    <cbc:Percent>19</cbc:Percent>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:ClassifiedTaxCategory>
</cac:Item>