Klarfile

BR-E-10: An exemption without a reason

This code shows up when an electronic invoice is validated. Here is what it means, why it fires, and what to change in the file.

Why this code appears

An exempt breakdown (category E) does not say WHY. The standard requires a reason (BT-120) or a reason code (BT-121): without it, the tax authority cannot tie the exemption to a legal basis, and the recipient cannot justify their accounting entry.

How to fix it

Add ExemptionReason with the statutory wording: for a French small-business exemption, "TVA non applicable, article 293 B du CGI". This is the most frequent rejection for sole traders and micro-businesses.

Where it happens

This code comes from EN 16931, the European e-invoicing standard. It concerns business term BT-120.

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