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`BR-O-06`:Out of scope requires reason

VAT category O must have exemption reason.

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.

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

Add reason

Use VATEX-EU-O code

Or explain

Why transaction is outside VAT scope

Technical Details

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

Common Causes

Document allowance with category O contains VAT rate
BT-96 allowance VAT rate present for O category
"Not subject to VAT" allowances must not specify rate
cbc:Percent element on allowance when should be omitted
Template includes rate field for out-of-scope allowance

Frequently Asked Questions

VAT category O must have exemption reason.

Add TaxExemptionReasonCode VATEX-EU-O or text. You can also use Invoice Navigator's automatic Fixer tool to correct this instantly.

Yes, BR-O-06 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-06 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 requires reason.

Related Errors

BR-CL-21

Invalid VAT exemption reason code

BR-O-05

Out of scope VAT must be zero

Last updated: 16 January 2026

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BR-O-06:Out of scope requires reason