# VATEX and tax exemption reason errors

Tax-exempt invoices need a coherent VAT category, rate, and reason. An arbitrary VATEX code is worse than a clear reason text.

## What you may see

- Validation reports that the tax exemption reason code is not allowed.
- The invoice has a zero VAT rate but no clear exemption or reverse-charge reason.
- A code such as VATEX-EU-E was copied from another case and does not match the scenario.

## Why this blocks export

Code lists are exact. The tax category, VAT rate, exemption reason text, and optional VATEX code must describe the same legal treatment. A mismatched code can make an otherwise clear invoice invalid.

## How to fix it

1. First choose the correct VAT category for the invoice line or subtotal.
2. Enter the exemption or reverse-charge wording from the source invoice as the reason text.
3. Only add a VATEX code when you know the exact code for that legal scenario. Leave the code empty rather than using a guessed value.

## Before you retry

- Check that every zero-rated or exempt VAT subtotal has an explanation.
- Confirm that seller and buyer VAT IDs are present when the selected tax treatment requires them.
- Run validation again after changing category, rate, reason text, or code.

## Common question

### Can I use any VATEX code with a tax-exempt invoice?
No. Use a VATEX code only when it matches the legal reason. Otherwise use the reason text from the invoice and validate again.