BR-O-06:A Document level allowance (BG-20) where VAT category code (BT-95) is "Not...
VAT category O must have exemption reason.
Engine Classification
Remove VAT rate from document-level allowances with Not subject to VAT category per EN16931 BR-O-06
Confidence: 95% · Applied automatically in pipeline
What is BR-O-06?
BR-O-06 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: //cac:AllowanceCharge[cbc:ChargeIndicator='false']/cac:TaxCategory[cbc:ID='O']/cbc:Percent
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-06 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-06
- ·Specification: EN 16931
How to Fix It
Add reason
Use VATEX-EU-O code
Or explain
Why transaction is outside VAT scope
Before / After
<Invoice> <cac:AllowanceCharge>-100.00</cac:AllowanceCharge> </Invoice>
<Invoice> <cac:AllowanceCharge>100.00</cac:AllowanceCharge> </Invoice>
Technical Reference
//cac:AllowanceCharge[cbc:ChargeIndicator='false']/cac:TaxCategory[cbc:ID='O']/cbc:PercentCommon Causes
- ·Document allowance with category O contains VAT rate
- ·BT-96 allowance VAT rate present for O category
- ·"Not subject to VAT" allowances must not specify rate
- ·cbc:Percent element on allowance when should be omitted
- ·Template includes rate field for out-of-scope allowance
Seeing this in production? The API handles BR-O-06 automatically. See the fix response →
Frequently Asked Questions
VAT category O must have exemption reason.
Add TaxExemptionReasonCode VATEX-EU-O or text. You can also use Invoice Navigator's automatic Fixer tool to correct this instantly.
Yes, BR-O-06 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-06 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 requires reason.
See Also
Related Errors
Last updated: 27 February 2026
Handle BR-O-06 Automatically in Your Pipeline
The compliance engine auto-remediates this error with controlled safety policies and evidence pack generation.