# BR-Z-10 Zero-rated VAT breakdown must not carry an exemption reason

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

## Problem Description

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

> **ERROR**: XRechnung 3.0

## Context and Significance

This EN16931 rule keeps zero-rated (category Z) supplies distinct from exempt supplies, so an exemption reason must not appear on a Z breakdown.

## Solution

Remove cbc:TaxExemptionReasonCode (BT-121) and cbc:TaxExemptionReason (BT-120) from the zero-rated TaxCategory; if the supply is genuinely exempt, use category E instead of Z.

- validate
- convert

## Valid Examples

- BG-23 with BT-118 = Z, BT-119 = 0 and no BT-120 or BT-121

## Invalid Examples

- BG-23 with BT-118 = Z but carrying BT-121 = "VATEX-EU-132"

## Code Examples

### Valid XML
```
<cac:TaxSubtotal>
  <cbc:TaxableAmount currencyID="EUR">100.00</cbc:TaxableAmount>
  <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
  <cac:TaxCategory><cbc:ID>Z</cbc:ID><cbc:Percent>0</cbc:Percent></cac:TaxCategory>
</cac:TaxSubtotal>
```

### Invalid XML
```
<cac:TaxSubtotal>
  <cbc:TaxableAmount currencyID="EUR">100.00</cbc:TaxableAmount>
  <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
  <cac:TaxCategory>
    <cbc:ID>Z</cbc:ID><cbc:Percent>0</cbc:Percent>
    <cbc:TaxExemptionReasonCode>VATEX-EU-132</cbc:TaxExemptionReasonCode>
  </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-Z-01](/resources/kosit-validator-errors/br-z-01-zero-rated-vat-breakdown-required)
- [BR-S-10](/resources/kosit-validator-errors/br-s-10-standard-rated-no-exemption-reason)
- [BR-CO-18](/resources/kosit-validator-errors/br-co-18-vat-breakdown-required)

## Validation Tools

- [Official KoSIT Validator](https://erechnungsvalidator.service-bw.de/): Validate your XRechnung files against all BR-DE rules.
- [Convert PDF to XRechnung](/pdf-to-xrechnung): Automatic validation error fixes when converting.

## Related Resources

- [Official Specification](https://xeinkauf.de/xrechnung/)
- [Test Suite](https://github.com/itplr-kosit/xrechnung-testsuite)
- [Complete Error List](/resources/kosit-validator-errors): Overview of all German XRechnung validation rules.