# BT-120 — VAT exemption reason text

> https://billhorse.com/en/terms/bt-120/

Free text explaining why no VAT is charged (e.g. "Reverse charge"). Required for categories E, AE, G and K (alternatively code BT-121); forbidden for S and Z.

## Where does it live in the XML?

- UBL: `cac:TaxTotal/cac:TaxSubtotal/cac:TaxCategory/cbc:TaxExemptionReason`
- CII: `ram:ApplicableTradeTax/ram:ExemptionReason`

## Checked by these rules

- [BR-S-10 — Standard rate (S): no exemption reason allowed](https://billhorse.com/en/rules/br-s-10/)
- [BR-Z-10 — Zero rated (Z): no exemption reason allowed](https://billhorse.com/en/rules/br-z-10/)
- [BR-E-10 — Exempt (E): exemption reason missing](https://billhorse.com/en/rules/br-e-10/)
- [BR-AE-10 — Reverse charge (AE): exemption reason missing](https://billhorse.com/en/rules/br-ae-10/)
- [BR-G-10 — Export (G): exemption reason missing](https://billhorse.com/en/rules/br-g-10/)
- [BR-IC-10 — Intra-community (K): exemption reason missing](https://billhorse.com/en/rules/br-ic-10/)