# BR-Z-07 Zero-rated document charge rate must be zero

In a document level charge (BG-21) where the document level charge VAT category code (BT-102) is "Zero rated", the document level charge VAT rate (BT-103) shall be 0 (zero).

## Problem Description

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

## Context and Significance

This EN16931 rule is the counterpart of BR-Z-05 and BR-Z-06 for document level charges with category Z. In practice, the error occurs when a freight or packaging charge keeps the default rate while its category is set to Z to match the goods.

## Solution

Set the document level charge VAT rate (BT-103) to 0 for category Z charges; use category S with a positive rate if VAT actually applies.

- [Validate XML](/en/xrechnung-validator?source=resource&rule=BR-Z-07)
- [Convert invoice](/en/pdf-to-xrechnung?source=resource&rule=BR-Z-07)

## Valid Examples

- Document charge with BT-102 = Z and BT-103 = 0

## Invalid Examples

- Document charge with BT-102 = Z but BT-103 = 19

## Code Examples

### Valid XML
```
<cac:AllowanceCharge>
  <cbc:ChargeIndicator>true</cbc:ChargeIndicator>
  <cbc:Amount currencyID="EUR">15.00</cbc:Amount>
  <cac:TaxCategory><cbc:ID>Z</cbc:ID><cbc:Percent>0</cbc:Percent><cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme></cac:TaxCategory>
</cac:AllowanceCharge>
```

### Invalid XML
```
<cac:AllowanceCharge>
  <cbc:ChargeIndicator>true</cbc:ChargeIndicator>
  <cbc:Amount currencyID="EUR">15.00</cbc:Amount>
  <cac:TaxCategory><cbc:ID>Z</cbc:ID><cbc:Percent>19</cbc:Percent><cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme></cac:TaxCategory>
</cac:AllowanceCharge>
```

## Affected Fields

- [BT-102 Document level charge VAT category code](/resources/xrechnung/bt-102-document-level-charge-vat-category-code)
- [BT-103 Document level charge VAT rate](/resources/xrechnung/bt-103-document-level-charge-vat-rate)

## Related Rules

- [BR-Z-04](/resources/kosit-validator-errors/br-z-04-zero-rated-charge-seller-vat-id)
- [BR-Z-05](/resources/kosit-validator-errors/br-z-05-zero-rated-line-rate-zero)
- [BR-Z-06](/resources/kosit-validator-errors/br-z-06-zero-rated-allowance-rate-zero)

## 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.