errorEN16931
BR-O-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-FIX1. Set appropriate VATEX code for category (E→VATEX-EU-*, G→VATEX-EU-G, etc.). 2. Or set exemption reason text.
No manual changes needed
Upload and Fix NowWhy 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.
Common Causes
- Category O breakdown missing exemption reason code or text
- BT-121 or BT-120 required for "Not subject to VAT"
- O category needs exemption justification
- cbc:TaxExemptionReasonCode or TaxExemptionReason absent
- Out-of-scope treatment requires explicit reason
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-O-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-O-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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