BR-E-07:Exempt requires exemption reason
Fix: Invoice Navigator automatically fixes this issue by correcting the `cac:AllowanceCharge` element in your Invoice (BR-E-07). Upload your invoice to fix this automatically.
VAT category E must have exemption reason.
Engine Classification
Set VAT rate to 0% for exempt document-level charges per EN16931 BR-E-07
Confidence: 95% · Applied automatically in pipeline
What is BR-E-07?
BR-E-07 is a fatal validation rule defined in the EN 16931 specification. It validates the Percent element under 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:AllowanceCharge[cbc:ChargeIndicator='true']/cac:TaxCategory[cbc:ID='E']/cbc:Percent
Why This Error Matters
Invoice will be rejected. VAT exempt (category E) transactions must follow specific rules including zero rate and seller tax identification.
BR-E-07 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-E-07
- ·Specification: EN 16931
How to Fix It
Check for reason
E category needs exemption reason
Add VATEX code
Or add text explanation
Before / After
<Invoice> <cac:AllowanceCharge>INVALID_CODE</cac:AllowanceCharge> </Invoice>
<Invoice> <cac:AllowanceCharge>VALID_CODE</cac:AllowanceCharge> </Invoice>
Technical Reference
//cac:AllowanceCharge[cbc:ChargeIndicator='true']/cac:TaxCategory[cbc:ID='E']/cbc:PercentCommon Causes
- ·Exempt document charge has non-zero VAT rate
- ·BT-102 is E but BT-103 is not 0%
- ·VAT exempt charge must have zero rate
- ·Charge rate field contains non-zero value
- ·Tax rate not cleared for exempt surcharge
Seeing this in production? The API handles BR-E-07 automatically. See the fix response →
Frequently Asked Questions
VAT category E must have exemption reason.
Add TaxExemptionReasonCode or TaxExemptionReason. You can also use Invoice Navigator's automatic Fixer tool to correct this instantly.
Yes, BR-E-07 is a critical error that will cause invoice rejection. It must be fixed before submission to ensure your invoice is accepted by the recipient's system.
Many instances of BR-E-07 can be automatically corrected using Invoice Navigator's Fixer tool. Upload your invoice and the tool will identify and fix common issues, including exempt requires exemption reason.
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Last updated: 27 February 2026
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