# BR-IC-05 Intra-community line VAT rate must be zero

In an invoice line (BG-25) whose invoiced item VAT category code (BT-151) is "Intra-community supply", the invoiced item VAT rate (BT-152) shall be 0.

## Problem Description

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

## Context and Significance

An intra-community supply is exempt from VAT in the seller’s member state, so its line rate must be 0 and not the standard rate. In practice, the error occurs when the item keeps its usual rate after the line is switched to category K.

## Solution

Set cbc:Percent to 0 in the line ClassifiedTaxCategory whenever cbc:ID is K.

- [Validate XML](/en/xrechnung-validator?source=resource&rule=BR-IC-05)
- [Convert invoice](/en/pdf-to-xrechnung?source=resource&rule=BR-IC-05)

## Valid Examples

- Line with BT-151 = K and BT-152 = 0 for goods shipped from DE to FR

## Invalid Examples

- Line with BT-151 = K but BT-152 = 19

## Code Examples

### Valid XML
```
<cac:Item>
  <cac:ClassifiedTaxCategory>
    <cbc:ID>K</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>K</cbc:ID>
    <cbc:Percent>19</cbc:Percent>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:ClassifiedTaxCategory>
</cac:Item>
```

## Affected Fields

- [BT-151 Invoiced item VAT category code](/resources/xrechnung/bt-151-invoice-line-vat-category-code)
- [BT-152 Invoiced item VAT rate](/resources/xrechnung/bt-152-invoice-line-vat-category-rate)

## Related Rules

- [BR-IC-06](/resources/kosit-validator-errors/br-ic-06-allowance-zero-vat-rate)
- [BR-IC-07](/resources/kosit-validator-errors/br-ic-07-charge-zero-vat-rate)
- [BR-IC-01](/resources/kosit-validator-errors/br-ic-01-intra-community-vat-breakdown-required)

## 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.