Reference
Markdown exportBR-IC-10 Intra-community breakdown needs an exemption reason
A VAT breakdown (BG-23) with the VAT category code (BT-118) "Intra-community supply" shall have a VAT exemption reason code (BT-121) meaning "Intra-community supply" (VATEX-EU-IC) or the VAT exemption reason text (BT-120) "Intra-community supply" (or its equivalent standard text in another language).
Problem Description
ERROR
EN 16931 VAT category rule
Context and Significance
The exemption reason states the legal basis for charging no VAT, as Article 226(11) of the VAT Directive 2006/112/EC requires; for intra-community supplies this is Article 138. The seller’s tax authority checks this note when it accepts the exemption, and the buyer needs it to account for VAT on the intra-community acquisition. In practice, the error occurs when the note appears only on the PDF and not in BT-120 or BT-121.
Solution
Add cbc:TaxExemptionReasonCode = VATEX-EU-IC (or a matching cbc:TaxExemptionReason text) to the K TaxCategory.
Quick actions
Valid Examples
- K breakdown with BT-121 = VATEX-EU-IC
- K breakdown with BT-120 = "Intra-community supply"
Invalid Examples
- K breakdown with neither BT-121 nor BT-120 present
Code Examples
<cac:TaxCategory>
<cbc:ID>K</cbc:ID>
<cbc:Percent>0</cbc:Percent>
<cbc:TaxExemptionReasonCode>VATEX-EU-IC</cbc:TaxExemptionReasonCode>
<cbc:TaxExemptionReason>Intra-community supply</cbc:TaxExemptionReason>
<cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:TaxCategory><cac:TaxCategory>
<cbc:ID>K</cbc:ID>
<cbc:Percent>0</cbc:Percent>
<cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:TaxCategory>