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BR-IC-07:Intra-community requires reason
VAT category K must have exemption reason.
We can fix this automatically
AUTO-FIX1. Find items with this category but non-zero rate. 2. Set rate to 0. 3. Or suggest different category if rate is intentional.
No manual changes needed
Upload and Fix NowWhy This Error Matters
Invoice will be rejected. Intra-community supply (category IC) charges must have 0% VAT rate because the buyer accounts for VAT via reverse charge mechanism. Non-zero rate violates EU cross-border rules.
How to Fix It
1
Add reason
Use VATEX-EU-IC code
2
Or add text
"Intra-community supply"
Technical Details
XPath: /Invoice/cac:TaxTotal/cac:TaxSubtotal[cac:TaxCategory/cbc:ID="K"]/cac:TaxCategoryCommon Causes
- Document charge with IC category has non-zero VAT rate
- BT-103 cbc:Percent contains positive value instead of 0
- Intra-community charges must use 0% rate for reverse charge
- Default VAT rate applied instead of IC zero rate
- Export template not configured for IC charge rate rules
Frequently Asked Questions
VAT category K must have exemption reason.
Add TaxExemptionReasonCode VATEX-EU-IC. You can also use Invoice Navigator's automatic Fixer tool to correct this instantly.
Yes, BR-IC-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-IC-07 can be automatically corrected using Invoice Navigator's Fixer tool. Upload your invoice and the tool will identify and fix common issues, including intra-community requires reason.
See Also
Related Errors
Last updated: 16 January 2026
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