# BR-Z-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 VAT Category code (BT-118) "Zero rated" shall not have a VAT exemption reason code (BT-121) or VAT exemption reason text (BT-120).

Source: https://docs.peppol.eu/poacc/billing/3.0/rules/ubl-tc434/BR-Z-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 "Zero rated" must not include a VAT exemption reason code (BT-121) or a VAT exemption reason text (BT-120). The official message says "Zero rated". The published test is not((cbc:TaxExemptionReason) or (cbc:TaxExemptionReasonCode)) where the category code is Z.

## What to change

Remove the exemption reason code and the exemption reason text from the Z breakdown.

## 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 Z and an exemption reason text or an exemption reason code is present.

**Passes the stated condition.** That breakdown's category code is Z and both the exemption reason text and the exemption reason code are absent.

## Published context and test

Copied from the source. Not reimplemented on this page.

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

```
not((cbc:TaxExemptionReason) or (cbc:TaxExemptionReasonCode))
```

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