Fix BR-S-10: Exemption reason (BT-120/BT-121) not allowed with standard rating

BR-S-10 in your own invoice? Upload the file and find every error in seconds.

What does BR-S-10 mean?

A VAT breakdown with category S (standard rated) must not carry a VAT exemption reason. Standard rating is not an exemption.

Common causes of BR-S-10

The VAT block has category 'S' but still contains an exemption reason (BT-120/BT-121).
A template for VAT exempt invoices was reused for a standard rated invoice.
The category was set to 'S' by mistake although the turnover should be exempt.

How to fix BR-S-10

Find the faulty spot in the XML. Open the XML of the invoice and go to field BT-118 along this XPath://ram:ApplicableHeaderTradeSettlement/ram:ApplicableTradeTax
Apply the fix. A VAT breakdown (BG-23) with category 'S' (standard rated) must not carry an exemption reason. In the affected 'ram:ApplicableTradeTax' (CategoryCode='S'), remove the elements 'ram:ExemptionReason' (BT-120) and 'ram:ExemptionReasonCode' (BT-121). An exemption reason belongs only to exempt categories such as 'E', 'Z', 'AE', 'K' or 'G'.
Validate again. Save the file and validate it again to check that BR-S-10 is no longer reported.

Concrete fix

A VAT breakdown (BG-23) with category 'S' (standard rated) must not carry an exemption reason. In the affected 'ram:ApplicableTradeTax' (CategoryCode='S'), remove the elements 'ram:ExemptionReason' (BT-120) and 'ram:ExemptionReasonCode' (BT-121). An exemption reason belongs only to exempt categories such as 'E', 'Z', 'AE', 'K' or 'G'.

XPath//ram:ApplicableHeaderTradeSettlement/ram:ApplicableTradeTax

Before / after: the XML example

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

Wrong

<ram:ApplicableTradeTax>
  <ram:CalculatedAmount>19.00</ram:CalculatedAmount>
  <ram:TypeCode>VAT</ram:TypeCode>
  <ram:ExemptionReason>Steuerfrei</ram:ExemptionReason>
  <ram:CategoryCode>S</ram:CategoryCode>
  <ram:RateApplicablePercent>19</ram:RateApplicablePercent>
</ram:ApplicableTradeTax>

Correct

<ram:ApplicableTradeTax>
  <ram:CalculatedAmount>19.00</ram:CalculatedAmount>
  <ram:TypeCode>VAT</ram:TypeCode>
  <ram:CategoryCode>S</ram:CategoryCode>
  <ram:RateApplicablePercent>19</ram:RateApplicablePercent>
</ram:ApplicableTradeTax>

Frequent questions about BR-S-10

Why is an exemption reason not allowed with standard rating?

An exemption reason explains why no VAT applies. With category 'S' VAT does apply, so an exemption reason contradicts it and gets rejected.

My turnover really is exempt - what now?

Then the exemption reason is not wrong, the category is. Set BT-118 to the matching exempt category ('E', 'Z', 'AE', 'K' or 'G') and keep the exemption reason.

Related error codes

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