errorEN 16931

`BR-O-01`:Out of scope VAT category requirements

VAT category O (out of scope) must not have a VAT percentage.

Severity

Fatal

Rule set

EN 16931

Country

All EU

Fix type

BLOCKED

Engine Classification

Financial or legal field · Modification blocked by policy

What is BR-O-01?

BR-O-01 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 non-compliant and will be rejected by Peppol access points and national validation services. The sending system receives a rejection response and the invoice does not reach the buyer.

Target path: XPath: //cac:TaxCategory[cbc:ID="O"]/cbc:Percent

This error requires manual correction — financial fields are protected by policy.Test This Error ↓

Why This Error Matters

Invoice will be rejected. "Not subject to VAT" (category O) has strict rules: no VAT identifiers allowed, no other categories permitted, and exemption reason required. Non-compliance prevents validation.

BR-O-01 is a hard failure. Invoices that trigger this rule are rejected at the access point and never reach the recipient. In Peppol networks, this means your sending system receives an MLR (Message Level Response) with a rejection status. The invoice must be corrected and re-sent, adding delay to your payment cycle.

Validator Behavior

·Causes invoice rejection
·Error returned: BR-O-01
·Specification: EN 16931

How to Fix It

Identify O category

For supplies outside VAT scope

Remove Percent

O category should not have Percent element

Add reason

Consider adding TaxExemptionReason

Before / After

Failing XML

<Invoice>
  <cac:InvoiceLine>999.99</cac:InvoiceLine>
  <!-- Does not match expected calculation -->
</Invoice>

Corrected XML

<Invoice>
  <cac:InvoiceLine>100.00</cac:InvoiceLine>
  <!-- Matches expected calculation -->
</Invoice>

Technical Reference

XPathXPath: //cac:TaxCategory[cbc:ID="O"]/cbc:Percent

SpecEN 16931

Strategy1. Find all lines/allowances/charges with this VAT category. 2. Ensure exactly one TaxSubtotal with matching category exists. 3. Create if missing.

Code Example

<cac:TaxCategory>
  <cbc:ID>O</cbc:ID>
  <!-- No Percent element for out of scope -->
  <cbc:TaxExemptionReason>Outside scope of VAT</cbc:TaxExemptionReason>
  <cac:TaxScheme>
    <cbc:ID>VAT</cbc:ID>
  </cac:TaxScheme>
</cac:TaxCategory>

Common Causes

·VAT category O used on lines but no BG-23 breakdown exists
·cac:TaxSubtotal missing for "Not subject to VAT" category
·Invoice lines use O category but tax breakdown not generated
·Out-of-scope transactions require explicit breakdown entry
·Tax total section missing mandatory O category subtotal

Seeing this in production? The API handles BR-O-01 automatically. See the fix response →

Commonly Seen In

All invoicing software

Frequently Asked Questions

VAT category O (out of scope) must not have a VAT percentage.

Remove percentage from out of scope items. You can also use Invoice Navigator's automatic Fixer tool to correct this instantly.

Yes, BR-O-01 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-O-01 can be automatically corrected using Invoice Navigator's Fixer tool. Upload your invoice and the tool will identify and fix common issues, including out of scope vat category requirements.

BR-O-01 is commonly seen in exports from All invoicing software. These software packages sometimes generate invoices that need adjustment to meet full compliance standards.

Related Errors

BR-E-01

An Invoice that contains an Invoice line (BG-25), a Document level allowance...

BR-Z-01