Use the ClassifiedTaxCategory sub-element of the Item element to model this information.

Elements

Element	Description
`Invoice/InvoiceLine/Item/ClassifiedTaxCategory/ID`	The Tax Category code.
`Invoice/InvoiceLine/Item/ClassifiedTaxCategory/Percent`	The percentage rate of tax for the category.
`Invoice/InvoiceLine/Item/ClassifiedTaxCategory/TaxExemptionReasonCode`	Use code with `VRBL:PT` prefix.
`Invoice/InvoiceLine/Item/ClassifiedTaxCategory/TaxExemptionReason`	Enter a textual description of the exemption reason.
`Invoice/InvoiceLine/Item/ClassifiedTaxCategory/TaxScheme/ID`	The Tax Scheme ID. Usually `VAT`.

Restrictions

You must use one of the following values for the ClassifiedTaxCategory/ID element. These codes are derived from the UNCL 5305 list.

Code	Description
`AA`	Lower rate
`S`	Standard rate
`E`	Exempt
`Z`	Zero rated goods
`AE`	VAT Reverse Charge
`G`	Free export item, VAT not charged
`O`	Services outside scope of tax
`RED`	Reduced rate
`INT`	Intermediate
`NOR`	Normal rate
`ISE`	Exempt
`OUT`	Others, applicable to special VAT schemes
`NA`	In case of non-subjection to VAT or IS. On receipts issued without itemized tax.
`IC`	Intra-Community VAT

For the TaxExemptionReasonCode element, you must use one of the codes from the Portugese tax reporting list. You must prefix this code with VRBL:PT.
For the TaxScheme/ID element, you must use one of the values from the UNCL 5153 list.

Example

<ubl:Invoice>
    <!-- Code omitted for clarity -->
        <cac:InvoiceLine>
            <cac:Item>
                <cac:ClassifiedTaxCategory>
                    <cbc:ID>E</cbc:ID>
                    <cbc:Percent>0.00</cbc:Percent>
                    <cbc:TaxExemptionReasonCode>VRBL:PT:M99</cbc:TaxExemptionReasonCode>
                    <cbc:TaxExemptionReason>Exempt or not subject</cbc:TaxExemptionReason>
                    <cac:TaxScheme>
                        <cbc:ID>VAT</cbc:ID>
                    </cac:TaxScheme>
                </cac:ClassifiedTaxCategory>
            </cac:Item>
        </cac:InvoiceLine>
    <!-- Code omitted for clarity -->
</ubl:Invoice>