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BR-O-05:Out of scope VAT must be zero

VAT amount for category O must be zero.

We can fix this automatically

AUTO-FIX

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. "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

1

Check O tax

TaxAmount for out of scope

2

Set to zero

O is outside VAT system

Technical Details

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

Common Causes

  • Invoice line with category O contains VAT rate element
  • BT-152 Invoiced item VAT rate present for O category line
  • "Not subject to VAT" items must not specify a VAT rate
  • cbc:Percent element present when should be omitted for O
  • ERP exports rate field despite out-of-scope category

Frequently Asked Questions

VAT amount for category O must be zero.
Set TaxAmount to 0.00. You can also use Invoice Navigator's automatic Fixer tool to correct this instantly.
Yes, BR-O-05 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-05 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 must be zero.

See Also

Related Errors

Last updated: 16 January 2026

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