errorEN16931

BR-IC-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-FIX

1. Set appropriate VATEX code for category (E→VATEX-EU-*, G→VATEX-EU-G, etc.). 2. Or set exemption reason text.

No manual changes needed
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Why This Error Matters

Invoice will be rejected. Intra-community supply (category IC) requires both seller and buyer VAT numbers for reverse charge mechanism. Missing elements prevent cross-border VAT compliance verification.

Common Causes

  • Intra-community category on document allowance without breakdown
  • Document-level allowance with IC category needs matching breakdown
  • cac:AllowanceCharge uses IC but no tax subtotal entry
  • Allowance VAT category IC not reflected in tax breakdown
  • IC allowance handling incomplete in invoice structure

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-IC-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-IC-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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