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IN-TAX-CATEGORY-CODES:Tax category codes validation

Tax category codes should be from UNCL5305 Peppol subset (AE, E, G, K, L, M, O, S, Z)

Fix this in your source system

MANUAL

Tax category codes affect tax calculation and reporting. The correct code must be determined based on the transaction type and applicable tax rules.

See the step-by-step instructions below to fix this error manually.

Why This Error Matters

VAT rate must be correct for proper tax calculation and reporting.

How to Fix It

1

Check category

S requires standard rate (19-27% in EU)

2

Zero categories

Z, E, AE, K, G should have 0 or no percent

3

Reduced rates

AA for reduced rate with applicable percentage

Code Example

<cac:TaxCategory>
  <cbc:ID>S</cbc:ID>
  <cbc:Percent>21</cbc:Percent>
</cac:TaxCategory>

Technical Details

XPath: //cac:TaxCategory/cbc:Percent

Common Causes

  • Wrong rate for country
  • Using 0% with S category
  • Invalid percentage value

Commonly Seen In

All invoicing software

Frequently Asked Questions

The VAT percentage must be a valid rate for the tax category.
Use valid VAT rate for the tax category. Invoice Navigator can help identify and fix this issue.
Yes, PEPPOL-EN16931-R007 is a critical error that must be fixed.

Related Errors

BR-21

Missing invoice line identifier

BR-S-08

Standard rate VAT amount missing

Last updated: 18 January 2026

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