errorEN16931
BR-E-10:This VAT category requires an exemption reason code or text explaining why no tax is charged.
This VAT category requires an exemption reason code or text explaining why no tax is charged.
We can fix this automatically
AUTO-FIX1. Set appropriate VATEX code for category (E→VATEX-EU-*, G→VATEX-EU-G, etc.). 2. Or set exemption reason text.
No manual changes needed
Upload and Fix NowWhy This Error Matters
Invoice will be rejected. VAT exempt (category E) transactions must include all mandatory elements in the VAT breakdown. Missing elements prevent tax authorities from verifying exempt status compliance.
Common Causes
- VAT exempt breakdown shows non-zero cbc:TaxAmount value
- Tax calculation applied to exempt category in error
- VAT rate not set to 0% for exempt category breakdown
- Rounding or calculation error produced non-zero tax amount
- Tax engine applied default rate instead of exempt zero rate
Frequently Asked Questions
This VAT category requires an exemption reason code or text explaining why no tax is charged.
This VAT category requires an exemption reason code or text explaining why no tax is charged. You can also use Invoice Navigator's automatic Fixer tool to correct this instantly.
Yes, BR-E-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-E-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
Share this guide: