# BR-S-10 Standard-rated VAT breakdown must not carry an exemption reason

A VAT breakdown (BG-23) with VAT category code (BT-118) "Standard rated" shall not have a VAT exemption reason code (BT-121) or VAT exemption reason text (BT-120).

## Problem Description

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

## Context and Significance

This EN16931 rule prevents a category S breakdown from carrying an exemption reason, which would contradict the fact that VAT is charged. In practice, the error occurs when an invoice template adds a fixed exemption text to every VAT breakdown, or when a line is changed from E to S but the old reason stays in the export.

## Solution

Remove cbc:TaxExemptionReasonCode (BT-121) and cbc:TaxExemptionReason (BT-120) from the standard-rated TaxCategory. An exemption reason belongs only to categories where the seller charges no VAT (E exempt, AE reverse charge, K intra-community supply, G export, O not subject to VAT), never to categories S or Z.

- [Validate XML](/en/xrechnung-validator?source=resource&rule=BR-S-10)
- [Convert invoice](/en/pdf-to-xrechnung?source=resource&rule=BR-S-10)

## Valid Examples

- BG-23 with BT-118 = S, BT-119 = 19 and no BT-120 or BT-121

## Invalid Examples

- BG-23 with BT-118 = S but carrying BT-120 = "Exempt supply"

## Code Examples

### Valid XML
```
<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>
```

### Invalid XML
```
<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>
    <cbc:TaxExemptionReason>Exempt supply</cbc:TaxExemptionReason>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:TaxCategory>
</cac:TaxSubtotal>
```

## Affected Fields

- [BT-118 VAT category code](/resources/xrechnung/bt-118-vat-category-code)
- [BT-120 VAT exemption reason text](/resources/xrechnung/bt-120-vat-exemption-reason-text)
- [BT-121 VAT exemption reason code](/resources/xrechnung/bt-121-vat-exemption-reason-code)

## Related Rules

- [BR-S-1](/resources/kosit-validator-errors/br-s-01-standard-rated-items-require-standard-rated-vat-breakdown)
- [BR-Z-10](/resources/kosit-validator-errors/br-z-10-zero-rated-no-exemption-reason)
- [BR-CO-18](/resources/kosit-validator-errors/br-co-18-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.