BR-E (Exempt from VAT rules)

BR-E is the set of European e-invoice rules governing VAT-exempt transactions.

Definition

The BR-E prefix in EN 16931 groups the business rules for VAT category E, meaning exempt. The supply still appears on the invoice but no VAT is due.

What the rules check

The BR-E rules require, among other things, that:

• the VAT rate equals 0 and the VAT amount is zero for category E;
• the invoice carries an exemption reason, expressed as free text (VAT exemption reason text) and/or a code (VAT exemption reason code).

A category E breakdown with no exemption reason triggers a validation error.

Good to know

This mandatory reason is what separates category E (exempt) from category Z (zero rated). The reason justifies the absence of tax under the applicable law, for example certain health, financial or educational services depending on national rules.