errorEN16931
BR-Z-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. Zero rated VAT (category Z) requires seller VAT registration, 0% rate, and correct breakdown. Zero rate is different from exemption - it still requires tax compliance.
Common Causes
- Zero rate breakdown has exemption reason
- Z category must not have BT-120 or BT-121
- Exemption reason incompatible with zero rate
- cbc:TaxExemptionReason present for Z category
- Zero rate is not an exemption - no reason needed
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-Z-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-Z-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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