InvoiceVerify

Belgian small-business VAT exemption on Peppol: fix BR-E-10 and the VAT code

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Under the exemption scheme you charge no VAT, but your Peppol invoice still needs a VAT category. Use category E (exempt) at 0% and put the statutory wording “Bijzondere vrijstellingsregeling van belasting” (French: “Régime particulier de la franchise de taxe”) as exemption reason (BT-120). Without that reason the invoice fails BR-E-10.

Why your invoice is rejected

  • BR-E-10: category E without an exemption reason. Every VAT breakdown with E needs a reason, as a code (BT-121) or as text (BT-120).
  • BR-O-02: you used category O (not subject to VAT) while your VAT number is on the invoice. O isn’t allowed together with a seller or buyer VAT number.
  • BR-S-05: you used category S (standard rate) at 0%. S requires a rate above 0.

Which category fits the exemption scheme?

The scheme is an exemption, not a 0% rate, so category E (exempt from VAT) fits. Category Z (zero rated) isn’t rejected technically, but it is meant for supplies taxed at 0%. Category E also requires the seller’s VAT number (EN 16931 rule BR-E-02), so keep your BE number on the invoice.

The correct wording since 2025

Since 1 January 2025, article 5, § 1, 10° quater of Royal Decree no. 1 requires the wording “Bijzondere vrijstellingsregeling van belasting” / “Régime particulier de la franchise de taxe” instead of the VAT. The older text “Bijzondere vrijstellingsregeling kleine ondernemingen” is still in many templates; update it.

The VATEX exemption code list has no code for this Belgian scheme. The official e-invoicing FAQ therefore says to put the exemption in the free-text field BT-120 (cbc:TaxExemptionReason). Don’t use VATEX-EU-132: that code covers exemptions under article 132 of the VAT Directive, such as medical care or education.

Correct: VAT breakdown under the exemption scheme
<cac:TaxTotal>
  <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
  <cac:TaxSubtotal>
    <cbc:TaxableAmount currencyID="EUR">1030.00</cbc:TaxableAmount>
    <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
    <cac:TaxCategory>
      <cbc:ID>E</cbc:ID>
      <cbc:Percent>0</cbc:Percent>
      <cbc:TaxExemptionReason>Bijzondere vrijstellingsregeling van belasting</cbc:TaxExemptionReason>
      <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
    </cac:TaxCategory>
  </cac:TaxSubtotal>
</cac:TaxTotal>

How to set it up

The exemption scheme doesn’t exempt you from e-invoicing: since 1 January 2026 you send invoices to Belgian VAT-registered customers via Peppol.

  • Set the invoice lines to VAT category E at 0%.
  • Enter the statutory wording as exemption reason text and leave the code empty.
  • Keep your VAT number as the seller VAT number.
  • In the InvoiceVerify generator, choose category E, set the code to “No code” and type the wording as text.

Frequently asked questions

Do small businesses under the exemption scheme have to use Peppol?
Yes. The scheme doesn’t exempt you from the e-invoicing obligation that applies since 1 January 2026 to invoices to Belgian VAT-registered customers.
Is the old wording “Bijzondere vrijstellingsregeling kleine ondernemingen” still fine?
It passes Peppol validation, but since 2025 the statutory text is “Bijzondere vrijstellingsregeling van belasting”. Use that one.
Why not category O, since I charge no VAT?
O means the supply is outside the scope of VAT. That isn’t true for the exemption scheme, and O isn’t allowed with your VAT number (BR-O-02).

Related rules

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