Exemption reason given although VAT is charged (standard rate) · BR-S-10
- Severity · Error
- Applies to · UBL / CII
- Editorial review pending
For the category standard rated (category S), the VAT breakdown (BG-23) must not contain an exemption reason – neither as a code (BT-121) nor as text (BT-120). An exemption reason belongs only to categories where no VAT is charged (E, AE, G, K or O). If one is given anyway, the invoice is not valid.
As of
Who can correct it?
The sender can correct the invoice.
How to fix it
- Ask the sender for a corrected invoice without an exemption reason for this category.
- If you issued the invoice yourself: remove the exemption reason from standard rate entries, or check whether an exempt category was actually intended.
Rule text and source
Paraphrase · The VAT breakdown for category S (standard-rated VAT) must omit both the exemption reason text and its code.
Message to the sender
Subject: Invoice {invoiceNumber} – exemption reason does not match VAT category
Hello,
Thank you for your invoice {invoiceNumber} dated {issueDate}. The VAT breakdown gives a VAT exemption reason for the standard rate category (rule BR-S-10). No exemption reason may be stated for this category. Could you please check which category applies and send us a corrected invoice?
Kind regardsExample
The category S breakdown mistakenly copies an exemption reason code from a template. The tax treatment is confirmed. The correction omits the code.
Related rules
Business terms
BG-23
Rule versions
CEN · EN 16931 (KoSIT) 1.3.16
CEN · EN 16931 1.3.17