# BR-IC-10

Quoted from a public specification. This page is not a validator, and it is not tax, legal, or accounting advice.

- Country: EU
- Syntax: UBL
- Severity: fatal
- Statement language: en
- Last verified: 2026-10-17

## Official statement

> A VAT breakdown (BG-23) with the VAT Category code (BT-118) "Intra-community supply" shall have a VAT exemption reason code (BT-121), meaning "Intra-community supply" or the VAT exemption reason text (BT-120) "Intra-community supply" (or the equivalent standard text in another language).

Source: https://docs.peppol.eu/poacc/billing/3.0/rules/ubl-tc434/BR-IC-10/

Peppol BIS Billing 3.0, May 2026 release, EN 16931 model bound to UBL

Severity note: fatal, from the Flag column of the Peppol BIS Billing 3.0 UBL rules index retrieved 2026-10-17.

## Plain-language reading

A VAT breakdown whose category is "Intra-community supply" must include a VAT exemption reason code (BT-121) that means "Intra-community supply", or the exemption reason text (BT-120) "Intra-community supply" (or the equivalent standard text in another language). The official message says "with the VAT Category code". The published test is exists(cbc:TaxExemptionReason) or (exists(cbc:TaxExemptionReasonCode) ) with a space before the closing parenthesis. It only checks that one of those two elements exists. It does not compare the text.

## What to change

On the K VAT breakdown, provide an exemption reason code that means "Intra-community supply", or set the exemption reason text to "Intra-community supply" or the equivalent standard text in another language.

## Illustration

Illustration of the condition in the official statement. Not an example published by the source.

**Fails the stated condition.** A VAT breakdown category code is K and both the exemption reason text and the exemption reason code are absent.

**Passes the stated condition.** That breakdown includes the exemption reason text "Intra-community supply" (or the equivalent standard text in another language), or a reason code that means "Intra-community supply".

## Published context and test

Copied from the source. Not reimplemented on this page.

```
/*/cac:TaxTotal/cac:TaxSubtotal/cac:TaxCategory[normalize-space(cbc:ID) = 'K'][cac:TaxScheme/normalize-space(upper-case(cbc:ID))='VAT']
```

```
exists(cbc:TaxExemptionReason) or (exists(cbc:TaxExemptionReasonCode) )
```

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