You must include a reason code for the exemption and a matching tax category code.

Elements

Use the following sub-element of the TaxTotal element:

Element (Path)	Cardinality	Description
Tax Category Code (`/Invoice/TaxTotal/TaxSubtotal/TaxCategory/ID`)	1..1	Specify the Tax Category Code.
Tax Exemption Reason Code (`/Invoice/TaxTotal/TaxSubtotal/TaxCategory/TaxExemptionReasonCode`)	0..1	Code that represents the reason for the exemption.
Tax Exemption Reason Text (`/Invoice/TaxTotal/TaxSubtotal/TaxCategory/TaxExemptionReason`)	0..1	Text that explains the reason for the exemption

Restrictions

You must use one of the following tax exemption reason codes and the associated tax category code.

The Tax Exemption Reason Codes are a subset of the VATEX codes here which are part of PEPPOL BIS 3.0.

The Tax Category Code is a a subset of the UNCL5305 set here.

Tax Exemption Reason Code	Tax Category Code
VATEX-EU-G	G
VATEX-EU-O	O
VATEX-EU-IC	IC
VATEX-EU-AE	AE
VATEX-EU-D	E
VATEX-EU-F	E
VATEX-EU-I	E
VATEX-EU-J	E

Example

The following example specifies a Tax Category Code of E and a Tax Exemption Reason Code of VATEX-EU-F:

<Invoice>
    <!-- code omitted for clarity -->
    <cac:TaxTotal>
        <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
        <cac:TaxSubtotal>
            <cbc:TaxableAmount currencyID="EUR">1200.00</cbc:TaxableAmount>
            <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
            <cac:TaxCategory>
                <cbc:ID>E</cbc:ID>
                <cbc:Percent>0.00</cbc:Percent>
                <cbc:TaxExemptionReasonCode>VATEX-EU-F</cbc:TaxExemptionReasonCode>
                <cac:TaxScheme>
                    <cbc:ID>VAT</cbc:ID>
                </cac:TaxScheme>
            </cac:TaxCategory>
        </cac:TaxSubtotal>  
    </cac:TaxTotal>
    <!-- code omitted for clarity -->
<Invoice>