Error code BR-E-10 means: the VAT breakdown with an exemption (E) states no reason.
What does BR-E-10 mean?
The validator shows this message (as worded in the official rules):
[BR-E-10]-A VAT breakdown (BG-23) with VAT Category code (BT-118) "Exempt from VAT" shall have a VAT exemption reason code (BT-121) or a VAT exemption reason text (BT-120).If you use VAT category E (exempt), the VAT breakdown must state why: with a VATEX code (BT-121, TaxExemptionReasonCode) or with a text (BT-120, TaxExemptionReason), for example a reference to the article of the VAT Code that grants the exemption.
Common causes
- The exemption is only stated as text at the bottom of the PDF.
- The VAT code for the exemption in the software has no reason.
- E was chosen where another category fits, such as O (not subject to VAT) or the small business exemption scheme.
How to fix it as the sender
- Link a fixed reason or VATEX code to every exempt VAT code.
- Have the export put that reason in
cac:TaxSubtotal/cac:TaxCategory. - In doubt about the right category or reason? Discuss it with your accountant.
Received an invoice with this error?
An invoice with this error is not compliant. Ask the supplier for a corrected invoice and do not change the XML yourself.
Example in the XML
❌ Wrong
<cac:TaxCategory>
<cbc:ID>E</cbc:ID>
<cbc:Percent>0</cbc:Percent>
<cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:TaxCategory>✅ Correct
<cac:TaxCategory>
<cbc:ID>E</cbc:ID>
<cbc:Percent>0</cbc:Percent>
<cbc:TaxExemptionReason>Vrijgesteld van btw, art. 44 Wbtw</cbc:TaxExemptionReason>
<cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:TaxCategory>Both snippets come from a complete test invoice that we checked with our validator: the wrong version gives exactly this message, the correct version no errors at all.
Good to know
In our test, a text such as “Vrijgesteld van btw, art. 44 Wbtw” (exempt under article 44 of the Belgian VAT Code) was enough. The right legal basis depends on your activity.
Check your invoice
Drop your XML into the free validator. You see right away whether this error still occurs, with a link to the explanation for every message.
Official rule
The full rule with its technical test (Schematron) is in the official Peppol documentation:
Related error codes
- BR-AE-10: The VAT breakdown with reverse charge (AE) states no reason.
- BR-CO-04: An invoice line has no VAT category.
Frequently asked questions about BR-E-10
Which VATEX code do I use?
The VATEX list contains codes per article of the European VAT directive, such as VATEX-EU-132 for certain activities in the public interest. Choose the code that matches your exemption, or use a text.
Is the small business exemption scheme also category E?
That is a different case with its own arrangements. Follow the guidance of the Belgian tax authority and test your invoice in the validator.