errorbusinessEN 16931

BR-AG-10:IPSI VAT breakdown must NOT have exemption reason

Fix: Invoice Navigator automatically fixes this issue by correcting the `cac:TaxSubtotal` element in your Invoice (BR-AG-10). Upload your invoice to fix this automatically.

An IPSI VAT breakdown must NOT have a VAT exemption reason code or text. IPSI is a positive tax (like standard VAT), so exemption reasons are not applicable.

Severity
Fatal
Rule set
EN 16931
Country
All EU
Fix type
AUTO-FIX
Confidence
95%
Category
tax

Engine Classification

Remove VAT exemption reason from IPSI breakdown per EN16931 BR-AG-10

Confidence: 95% · Applied automatically in pipeline

What is BR-AG-10?

BR-AG-10 is a fatal validation rule defined in the EN 16931 specification. It validates the TaxExemptionReasonCode element under ID='M'] > TaxCategory in the UBL invoice XML.

When this rule fires, the invoice is rejected by Peppol access points and never reaches the buyer.

Target path: //cac:TaxTotal/cac:TaxSubtotal[cac:TaxCategory/cbc:ID='M']/cac:TaxCategory/cbc:TaxExemptionReasonCode

Fix this error

Why This Error Matters

Invoice will be rejected. IPSI (Ceuta/Melilla indirect tax) transactions must follow specific rules for Spanish territory tax compliance.

BR-AG-10 is a hard failure — the invoice must be corrected and re-sent before it can reach the recipient.

Invoice Navigator can automatically correct this error in your pipeline. The fix is applied with full audit evidence, so your compliance trail remains intact.

Validator Behavior

  • ·Causes invoice rejection
  • ·Error returned: BR-AG-10
  • ·Specification: EN 16931

How to Fix It

1.

Locate IPSI VAT breakdown

2.

Check for exemption reason

3.

Remove exemption reason code

4.

Remove exemption reason text

5.

Validate the result

Before / After

Failing XML
<cac:TaxTotal>
  <cac:TaxSubtotal>-100.00</cac:TaxSubtotal>
</cac:TaxTotal>
Corrected XML
<cac:TaxTotal>
  <cac:TaxSubtotal>100.00</cac:TaxSubtotal>
</cac:TaxTotal>

Technical Reference

XPath//cac:TaxTotal/cac:TaxSubtotal[cac:TaxCategory/cbc:ID='M']/cac:TaxCategory/cbc:TaxExemptionReasonCode
SpecEN 16931
Operationremove
StrategyRemove VAT exemption reason from IPSI breakdown per EN16931 BR-AG-10

Common Causes

  • ·IPSI breakdown includes exemption reason (not allowed)
  • ·TaxExemptionReason added to non-exempt IPSI category
  • ·Template includes exemption fields for all tax categories
  • ·Export incorrectly added exemption text to IPSI
  • ·Copy from exempt category included reason fields

Seeing this in production? The API handles BR-AG-10 automatically. See the fix response →

Frequently Asked Questions

An IPSI VAT breakdown must NOT have a VAT exemption reason code or text. IPSI is a positive tax (like standard VAT), so exemption reasons are not applicable.

Invoice Navigator automatically fixes this issue by correcting the `cac:TaxSubtotal` element in your Invoice (BR-AG-10). You can also use Invoice Navigator's compliance engine to correct this automatically in your pipeline.

Yes, BR-AG-10 is a critical error that will cause invoice rejection. It must be fixed before submission.

Many instances of BR-AG-10 can be automatically corrected using Invoice Navigator's compliance engine. The fix is applied in your pipeline with full audit evidence.

Related Errors

BR-45Each VAT breakdown (BG-23) shall have a VAT category taxable amount (BT-116).BR-48Document allowance tax category requiredBR-AE-09Reverse charge VAT breakdown tax amount must be zero

Related Content

Learn
Free EN 16931 ValidatorValidate EN 16931 Invoices for germany
Glossary
Evidence Packe-Reporting
Errors
Invoice must have an issue dateMissing invoice type code
Answers
What is the difference between B2G and B2B e-invoicing?
Regulations
EN 16931

Last updated: 27 February 2026

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