Reference

BR-Z-05 Zero-rated line rate must be zero

In an invoice line (BG-25) where the invoiced item VAT category code (BT-151) is "Zero rated", the invoiced item VAT rate (BT-152) shall be 0 (zero).

This EN16931 rule ensures category Z lines carry a 0 % rate, because category Z denotes a taxable supply at a rate of zero. In practice, the error occurs when a standard-rated line receives code Z by mistake, so check the category before you change the rate.

Solution

Set the invoiced item VAT rate (BT-152) to 0 for category Z lines; use category S with a positive rate if VAT actually applies.

Quick actions

Validate XML Convert invoice

Valid Examples

Invoice line with BT-151 = Z and BT-152 = 0

Invalid Examples

Invoice line with BT-151 = Z but BT-152 = 19

Code Examples

Valid XML

<cac:InvoiceLine>
  <cac:Item>
    <cac:ClassifiedTaxCategory><cbc:ID>Z</cbc:ID><cbc:Percent>0</cbc:Percent><cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme></cac:ClassifiedTaxCategory>
  </cac:Item>
</cac:InvoiceLine>

Invalid XML

<cac:InvoiceLine>
  <cac:Item>
    <cac:ClassifiedTaxCategory><cbc:ID>Z</cbc:ID><cbc:Percent>19</cbc:Percent><cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme></cac:ClassifiedTaxCategory>
  </cac:Item>
</cac:InvoiceLine>