erroren16931

BR-E-07:Exempt requires exemption reason

VAT category E must have exemption reason.

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1. Find items with this category but non-zero rate. 2. Set rate to 0. 3. Or suggest different category if rate is intentional.

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Why This Error Matters

Invoice will be rejected. VAT exempt (category E) transactions must follow specific rules including zero rate and seller tax identification.

How to Fix It

1

Check for reason

E category needs exemption reason

2

Add VATEX code

Or add text explanation

Technical Details

XPath: /Invoice/cac:TaxTotal/cac:TaxSubtotal[cac:TaxCategory/cbc:ID="E"]/cac:TaxCategory

Common Causes

  • Exempt document charge has non-zero VAT rate
  • BT-102 is E but BT-103 is not 0%
  • VAT exempt charge must have zero rate
  • Charge rate field contains non-zero value
  • Tax rate not cleared for exempt surcharge

Frequently Asked Questions

VAT category E must have exemption reason.
Add TaxExemptionReasonCode or TaxExemptionReason. You can also use Invoice Navigator's automatic Fixer tool to correct this instantly.
Yes, BR-E-07 is a critical error that will cause invoice rejection. It must be fixed before submission to ensure your invoice is accepted by the recipient's system.
Many instances of BR-E-07 can be automatically corrected using Invoice Navigator's Fixer tool. Upload your invoice and the tool will identify and fix common issues, including exempt requires exemption reason.

See Also

EN 16931 Validator

Check your invoice now

Related Errors

BR-CL-21

Invalid VAT exemption reason code

BR-E-06

Exempt VAT must be zero

Last updated: 16 January 2026

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