Reference
Markdown exportBR-O-10 Not-subject-to-VAT breakdown needs an exemption reason
A VAT breakdown (BG-23) with VAT category code (BT-118) "Not subject to VAT" (O) shall carry a VAT exemption reason code (BT-121) meaning "Not subject to VAT", or a VAT exemption reason text (BT-120) stating "Not subject to VAT" (or the equivalent standard text in another language).
Problem Description
A VAT breakdown (BG-23) with VAT category code (BT-118) "Not subject to VAT" (O) shall carry a VAT exemption reason code (BT-121) meaning "Not subject to VAT", or a VAT exemption reason text (BT-120) stating "Not subject to VAT" (or the equivalent standard text in another language).
ERROR
XRechnung 3.0
Context and Significance
The exemption reason explains to the buyer and the tax authority why VAT does not apply to a not-subject-to-VAT supply.
Solution
Add cbc:TaxExemptionReasonCode = VATEX-EU-O or cbc:TaxExemptionReason = "Not subject to VAT" to the O TaxCategory.
Quick actions
Valid Examples
Use these points as the practical checks for this section.
- O breakdown with BT-121 = VATEX-EU-O
- O breakdown with BT-120 = "Not subject to VAT"
Invalid Examples
Use these points as the practical checks for this section.
- O breakdown with neither BT-121 nor BT-120 provided
Code Examples
<cac:TaxCategory>
<cbc:ID>O</cbc:ID>
<cbc:TaxExemptionReasonCode>VATEX-EU-O</cbc:TaxExemptionReasonCode>
<cbc:TaxExemptionReason>Not subject to VAT</cbc:TaxExemptionReason>
</cac:TaxCategory><cac:TaxCategory>
<cbc:ID>O</cbc:ID>
</cac:TaxCategory>