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`BR-O-01`:Out of scope VAT category requirements

VAT category O (out of scope) must not have a VAT percentage.

We can fix this automatically

AUTO-FIX

1. Find all lines/allowances/charges with this VAT category. 2. Ensure exactly one TaxSubtotal with matching category exists. 3. Create if missing.

No manual changes needed

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Why This Error Matters

Invoice will be rejected. "Not subject to VAT" (category O) has strict rules: no VAT identifiers allowed, no other categories permitted, and exemption reason required. Non-compliance prevents validation.

How to Fix It

Identify O category

For supplies outside VAT scope

Remove Percent

O category should not have Percent element

Add reason

Consider adding TaxExemptionReason

Code Example

<cac:TaxCategory>
  <cbc:ID>O</cbc:ID>
  <!-- No Percent element for out of scope -->
  <cbc:TaxExemptionReason>Outside scope of VAT</cbc:TaxExemptionReason>
  <cac:TaxScheme>
    <cbc:ID>VAT</cbc:ID>
  </cac:TaxScheme>
</cac:TaxCategory>

Technical Details

XPath: //cac:TaxCategory[cbc:ID="O"]/cbc:Percent

Common Causes

VAT category O used on lines but no BG-23 breakdown exists
cac:TaxSubtotal missing for "Not subject to VAT" category
Invoice lines use O category but tax breakdown not generated
Out-of-scope transactions require explicit breakdown entry
Tax total section missing mandatory O category subtotal

Commonly Seen In

All invoicing software

Frequently Asked Questions

VAT category O (out of scope) must not have a VAT percentage.

Remove percentage from out of scope items. You can also use Invoice Navigator's automatic Fixer tool to correct this instantly.

Yes, BR-O-01 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-O-01 can be automatically corrected using Invoice Navigator's Fixer tool. Upload your invoice and the tool will identify and fix common issues, including out of scope vat category requirements.

BR-O-01 is commonly seen in exports from All invoicing software. These software packages sometimes generate invoices that need adjustment to meet full compliance standards.

Related Errors

BR-E-01

VAT exemption requires reason

BR-Z-01

Zero VAT rate requires exemption reason

Last updated: 16 January 2026

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BR-O-01:Out of scope VAT category requirements