errorEN16931

BR-AF-10:IGIC VAT breakdown must not have exemption reason

An IGIC VAT breakdown must NOT have a VAT exemption reason code or text. IGIC is a positive tax (like standard VAT), so exemption reasons are not applicable.

We can fix this automatically

AUTO-FIX

Auto-fix: Remove VAT exemption reason code (BT-121) and exemption reason text (BT-120) from IGIC breakdown. Safe because IGIC never has exemptions.

No manual changes needed
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Why This Error Matters

Invoice will be rejected by validation. IGIC is a taxable category - providing an exemption reason is logically incorrect.

How to Fix It

1

Locate IGIC VAT breakdown

2

Check for exemption reason

3

Remove exemption reason code

4

Remove exemption reason text

5

Validate the result

Technical Details

XPath: /Invoice/cac:TaxTotal/cac:TaxSubtotal/cac:TaxCategory[cbc:ID="L"]/cbc:TaxExemptionReasonCode (BT-121) and /cbc:TaxExemptionReason (BT-120). IGIC (category L) is the Canary Islands indirect tax. It is a positive tax rate, so exemption reasons do not apply and must not be present.

Common Causes

  • Exemption reason code added to IGIC breakdown in error
  • Copy from exempt category without clearing exemption fields
  • ERP template includes exemption fields by default
  • Confusion between IGIC and exempt categories
  • Manual entry added unnecessary exemption text

Frequently Asked Questions

An IGIC VAT breakdown must NOT have a VAT exemption reason code or text. IGIC is a positive tax (like standard VAT), so exemption reasons are not applicable.
Remove VAT exemption reason code (BT-121) and exemption text (BT-120) from the IGIC VAT breakdown. You can also use Invoice Navigator's automatic Fixer tool to correct this instantly.
Yes, BR-AF-10 is a critical error that will cause invoice rejection. It must be fixed before submission to ensure your invoice is accepted.
Many instances of BR-AF-10 can be automatically corrected using Invoice Navigator's Fixer tool. Upload your invoice and the tool will identify and fix common issues.

See Also

Last updated: 16 January 2026

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