Reference

BR-O-11 Not-subject-to-VAT invoice must have no other VAT breakdown

An invoice that contains a VAT breakdown (BG-23) with VAT category code (BT-118) "Not subject to VAT" (O) shall not contain any other VAT breakdown group (BG-23).

An invoice with a category O breakdown is entirely outside the scope of VAT, so it may not carry taxable, zero-rated or exempt breakdowns alongside the O summary. In practice, the error occurs when one invoice combines taxable items with pass-through costs outside the scope of VAT.

Solution

Keep only the single category O breakdown and remove every other breakdown (S, Z, E, AE, K, G, L, M or B). If the invoice must also contain supplies in another category, issue separate invoices.

Quick actions

Validate XML Convert invoice

Valid Examples

Only one BG-23 breakdown, category O

Invalid Examples

One O breakdown plus a second breakdown with BT-118 = S (19 %)

Code Examples

Valid XML

<cac:TaxTotal>
  <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
  <cac:TaxSubtotal>
    <cbc:TaxableAmount currencyID="EUR">100.00</cbc:TaxableAmount>
    <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
    <cac:TaxCategory><cbc:ID>O</cbc:ID><cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme></cac:TaxCategory>
  </cac:TaxSubtotal>
</cac:TaxTotal>

Invalid XML

<cac:TaxTotal>
  <cbc:TaxAmount currencyID="EUR">19.00</cbc:TaxAmount>
  <cac:TaxSubtotal>
    <cbc:TaxableAmount currencyID="EUR">100.00</cbc:TaxableAmount>
    <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
    <cac:TaxCategory><cbc:ID>O</cbc:ID><cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme></cac:TaxCategory>
  </cac:TaxSubtotal>
  <cac:TaxSubtotal>
    <cbc:TaxableAmount currencyID="EUR">100.00</cbc:TaxableAmount>
    <cbc:TaxAmount currencyID="EUR">19.00</cbc:TaxAmount>
    <cac:TaxCategory><cbc:ID>S</cbc:ID><cbc:Percent>19</cbc:Percent><cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme></cac:TaxCategory>
  </cac:TaxSubtotal>
</cac:TaxTotal>