Fix BR-32: VAT category of the allowance (BT-95) missing

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What does BR-32 mean?

Every document level allowance needs a VAT category code. It assigns the allowance to the right VAT breakdown.

Common causes of BR-32

The allowance has an amount, but no VAT category code.
The element ram:CategoryTradeTax is missing entirely from the allowance block.
The category code of the allowance does not match any of the VAT breakdowns (BG-23).

How to fix BR-32

Find the faulty spot in the XML. Open the XML of the invoice and go to field BT-95 along this XPath://ram:ApplicableHeaderTradeSettlement/ram:SpecifiedTradeAllowanceCharge/ram:CategoryTradeTax/ram:CategoryCode
Apply the fix. Every document level allowance (BG-20) needs a VAT category code (BT-95). Add the element ram:CategoryTradeTax/ram:CategoryCode to the allowance with a code from UNCL5305, for example 'S' for standard rate, 'Z' for zero rate, 'E' for exempt.
Validate again. Save the file and validate it again to check that BR-32 is no longer reported.

Concrete fix

Every document level allowance (BG-20) needs a VAT category code (BT-95). Add the element ram:CategoryTradeTax/ram:CategoryCode to the allowance with a code from UNCL5305, for example 'S' for standard rate, 'Z' for zero rate, 'E' for exempt.

XPath//ram:ApplicableHeaderTradeSettlement/ram:SpecifiedTradeAllowanceCharge/ram:CategoryTradeTax/ram:CategoryCode

Before / after: the XML example

This is the spot in question before and after the fix (Cross Industry Invoice, ZUGFeRD/Factur-X).

Wrong

<ram:SpecifiedTradeAllowanceCharge>
  <ram:ChargeIndicator><udt:Indicator>false</udt:Indicator></ram:ChargeIndicator>
  <ram:ActualAmount>10.00</ram:ActualAmount>
</ram:SpecifiedTradeAllowanceCharge>

Correct

<ram:SpecifiedTradeAllowanceCharge>
  <ram:ChargeIndicator><udt:Indicator>false</udt:Indicator></ram:ChargeIndicator>
  <ram:ActualAmount>10.00</ram:ActualAmount>
  <ram:CategoryTradeTax>
    <ram:TypeCode>VAT</ram:TypeCode>
    <ram:CategoryCode>S</ram:CategoryCode>
    <ram:RateApplicablePercent>19</ram:RateApplicablePercent>
  </ram:CategoryTradeTax>
</ram:SpecifiedTradeAllowanceCharge>

Frequent questions about BR-32

Which category code belongs to the allowance?

The same code as on the lines the allowance refers to. For standard taxation 'S' with the matching rate, for tax free supplies 'E' or 'Z'.

Why does an allowance need a tax code at all?

The allowance reduces the taxable amount of a given VAT category. Without a code the amount cannot be assigned to a VAT breakdown (BG-23) and the tax does not add up.

Related error codes

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