How do I fix BR-O-02?

Invoice Navigator automatically fixes this issue by correcting the `cac:InvoiceLine` element in your Invoice (BR-O-02). You can also use Invoice Navigator's compliance engine to correct this automatically in your pipeline.

Is BR-O-02 a critical error?

Yes, BR-O-02 is a critical error that will cause invoice rejection. It must be fixed before submission.

Can BR-O-02 be automatically fixed?

Many instances of BR-O-02 can be automatically corrected using Invoice Navigator's compliance engine. The fix is applied in your pipeline with full audit evidence.

errorEN 16931

`BR-O-02`:VAT identifier found but invoice is marked as not subject to VAT

Your invoice uses VAT category "O" (Not subject to VAT) on one or more lines, but the seller has a VAT identification number. These two things contradict each other — if VAT does not apply, the seller should not have a VAT ID on this invoice.

Severity

Fatal

Rule set

EN 16931

Country

All EU

Fix type

AUTO-FIX

Confidence

70%

Engine Classification

Present user with choice: remove seller VAT identifier (if truly not subject to VAT) or change the tax category to the correct one (if VAT applies)

Confidence: 70% · Applied automatically in pipeline

What is BR-O-02?

BR-O-02 is a fatal validation rule defined in the EN 16931 specification. It validates the CompanyID element under Party > PartyTaxScheme 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: /Invoice/cac:AccountingSupplierParty/cac:Party/cac:PartyTaxScheme/cbc:CompanyID

Get API Access 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-02 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.

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-O-02
·Specification: EN 16931

How to Fix It

Before / After

Failing XML

<Invoice>
  <cac:InvoiceLine>-100.00</cac:InvoiceLine>
</Invoice>

Corrected XML

<Invoice>
  <cac:InvoiceLine>100.00</cac:InvoiceLine>
</Invoice>

Technical Reference

XPath/Invoice/cac:AccountingSupplierParty/cac:Party/cac:PartyTaxScheme/cbc:CompanyID

SpecEN 16931

Operationremove

StrategyPresent user with choice: remove seller VAT identifier (if truly not subject to VAT) or change the tax category to the correct one (if VAT applies)

Common Causes

·Category O line found but seller VAT identifier present
·"Not subject to VAT" transactions must not have seller BT-31
·Seller cac:PartyTaxScheme included when O category used
·VAT registration incompatible with out-of-scope category
·Template includes VAT ID despite non-VAT transaction type

Seeing this in production? The API handles BR-O-02 automatically. See the fix response →

Related Errors

BR-16

Invoice line must have an identifier

BR-24

Amount currency must match document currency

BR-AE-05

Reverse charge invoice line must have 0% VAT rate

Last updated: 27 February 2026

Share this guide:

Handle BR-O-02 Automatically in Your Pipeline

The compliance engine auto-remediates this error with controlled safety policies and evidence pack generation.

Get API Access View API Documentation

BR-O-02:VAT identifier found but invoice is marked as not subject to VAT