InvoiceGlass

Reason why no VAT is charged is missing (not subject to VAT) · BR-O-10

  • Severity · Error
  • Applies to · UBL / CII
  • Editorial review pending

The category O breakdown needs to give the reason the transaction is outside the scope of VAT. The check looks for a reason text (BT-120) or code (BT-121) in its dedicated field.

As of

Who can correct it?

The sender can correct the invoice.

How to fix it

  1. Ask the sender for a corrected invoice with the appropriate note in the VAT breakdown.
  2. If you issued the invoice yourself: enter the exemption reason code VATEX-EU-O or the text "Not subject to VAT" for the not subject to VAT category.

Rule text and source

Paraphrase · The breakdown for O must explain the outside the scope of VAT treatment. The check accepts a reason in text or the corresponding code.

Message to the sender

Subject: Invoice {invoiceNumber} – VAT note missing

Hello,

Thank you for your invoice {invoiceNumber} dated {issueDate}. The invoice uses the VAT category not subject to VAT, but the VAT breakdown lacks the related note explaining why no VAT is charged (rule BR-O-10). Could you please add the exemption reason code VATEX-EU-O or the text "Not subject to VAT" and send us a corrected invoice?

Kind regards

Example

The breakdown gives category O without a reason text or code. With that treatment confirmed, the correction gives “Outside the scope of VAT” in the reason text field.

Related rules

Business terms

BG-23

Rule versions

CEN · EN 16931 (KoSIT) 1.3.16

CEN · EN 16931 1.3.17

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