diff --git a/src/Apps/BE/PeppolBE/App/src/PEPPOL30BEEscompte.Codeunit.al b/src/Apps/BE/PeppolBE/App/src/PEPPOL30BEEscompte.Codeunit.al
new file mode 100644
index 00000000000..08bae8bf923
--- /dev/null
+++ b/src/Apps/BE/PeppolBE/App/src/PEPPOL30BEEscompte.Codeunit.al
@@ -0,0 +1,78 @@
+// ------------------------------------------------------------------------------------------------
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License. See License.txt in the project root for license information.
+// ------------------------------------------------------------------------------------------------
+namespace Microsoft.Peppol.BE;
+
+using Microsoft.Finance.GeneralLedger.Setup;
+using Microsoft.Finance.VAT.Calculation;
+using Microsoft.Sales.Document;
+
+/// <summary>
+/// Shared helpers for the Belgian payment-discount (escompte) compensation. In Belgium VAT is kept on the discounted base, even when the invoice is reported with the full amount.
+/// To avoid reporting a reduced amount payable (the discount is only conditional) a compensating Exempt (category E) breakdown line is added. 
+/// </summary>
+codeunit 37316 "PEPPOL30 BE Escompte"
+{
+    Access = Internal;
+    InherentEntitlements = X;
+    InherentPermissions = X;
+
+    var
+        CompensationChargeReasonTxt: Label 'Payment discount not deducted from the amount payable';
+        CompensationExemptionReasonTxt: Label 'Conditional early-payment discount, not part of the taxable amount';
+
+    /// <summary>
+    /// The VAT Amount Line "VAT Identifier" used to mark this compensation line. Internal to the buffer, not written to the PEPPOL document.
+    /// </summary>
+    procedure GetCompensationVATIdentifier(): Code[20]
+    begin
+        exit('ESCOMPTE-COMP');
+    end;
+
+    /// <summary>
+    /// The PEPPOL VAT category code used for the compensation line and charge.
+    /// </summary>
+    procedure GetExemptTaxCategory(): Code[10]
+    begin
+        exit('E');
+    end;
+
+    /// <summary>
+    /// Returns whether the given VAT amount line is the synthetic escompte compensation line.
+    /// </summary>
+    procedure IsCompensationLine(VATAmtLine: Record "VAT Amount Line"): Boolean
+    begin
+        exit(VATAmtLine."VAT Identifier" = GetCompensationVATIdentifier());
+    end;
+
+    /// <summary>
+    /// The AllowanceChargeReason used on the compensating Exempt charge.
+    /// </summary>
+    procedure GetCompensationChargeReason(): Text
+    begin
+        exit(CompensationChargeReasonTxt);
+    end;
+
+    /// <summary>
+    /// The VAT exemption reason used on the compensating Exempt VAT breakdown.
+    /// </summary>
+    procedure GetCompensationExemptionReason(): Text
+    begin
+        exit(CompensationExemptionReasonTxt);
+    end;
+
+    /// <summary>
+    /// Document's currency code (inline with PEPPOL's implementation).
+    /// </summary>
+    procedure DocumentCurrencyCode(SalesHeader: Record "Sales Header"): Text
+    var
+        GLSetup: Record "General Ledger Setup";
+    begin
+        if SalesHeader."Currency Code" <> '' then
+            exit(SalesHeader."Currency Code");
+        GLSetup.Get();
+        GLSetup.TestField("LCY Code");
+        exit(GLSetup."LCY Code");
+    end;
+}
diff --git a/src/Apps/BE/PeppolBE/App/src/PEPPOL30BEMonetaryInfo.Codeunit.al b/src/Apps/BE/PeppolBE/App/src/PEPPOL30BEMonetaryInfo.Codeunit.al
new file mode 100644
index 00000000000..79dee0965ce
--- /dev/null
+++ b/src/Apps/BE/PeppolBE/App/src/PEPPOL30BEMonetaryInfo.Codeunit.al
@@ -0,0 +1,104 @@
+// ------------------------------------------------------------------------------------------------
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License. See License.txt in the project root for license information.
+// ------------------------------------------------------------------------------------------------
+namespace Microsoft.Peppol.BE;
+
+using Microsoft.Finance.VAT.Calculation;
+using Microsoft.Peppol;
+using Microsoft.Sales.Document;
+
+/// <summary>
+/// Needed to add into the LegalMonetaryTotal the Belgian escompte compensation (if applicable). We are storing the compensation in the VAT Amount Line records.
+/// </summary>
+codeunit 37318 "PEPPOL30 BE Monetary Info" implements "PEPPOL Monetary Info Provider"
+{
+    Access = Internal;
+    InherentEntitlements = X;
+    InherentPermissions = X;
+
+    var
+        PEPPOL30: Codeunit "PEPPOL30";
+        Escompte: Codeunit "PEPPOL30 BE Escompte";
+
+    procedure GetLegalMonetaryInfo(SalesHeader: Record "Sales Header"; var TempSalesLine: Record "Sales Line" temporary; var VATAmtLine: Record "VAT Amount Line"; var LineExtensionAmount: Text; var LegalMonetaryTotalCurrencyID: Text; var TaxExclusiveAmount: Text; var TaxExclusiveAmountCurrencyID: Text; var TaxInclusiveAmount: Text; var TaxInclusiveAmountCurrencyID: Text; var AllowanceTotalAmount: Text; var AllowanceTotalAmountCurrencyID: Text; var ChargeTotalAmount: Text; var ChargeTotalAmountCurrencyID: Text; var PrepaidAmount: Text; var PrepaidCurrencyID: Text; var PayableRoundingAmount: Text; var PayableRndingAmountCurrencyID: Text; var PayableAmount: Text; var PayableAmountCurrencyID: Text)
+    var
+        CompensationAmount: Decimal;
+        RealVATBase: Decimal;
+        RealInvDiscount: Decimal;
+        RealPmtDiscount: Decimal;
+        RealAmtInclVAT: Decimal;
+        CurrencyId: Text;
+    begin
+        if not HasCompensationLine(VATAmtLine) then begin
+            PEPPOL30.GetLegalMonetaryInfo(SalesHeader, TempSalesLine, VATAmtLine, LineExtensionAmount, LegalMonetaryTotalCurrencyID, TaxExclusiveAmount, TaxExclusiveAmountCurrencyID, TaxInclusiveAmount, TaxInclusiveAmountCurrencyID, AllowanceTotalAmount, AllowanceTotalAmountCurrencyID, ChargeTotalAmount, ChargeTotalAmountCurrencyID, PrepaidAmount, PrepaidCurrencyID, PayableRoundingAmount, PayableRndingAmountCurrencyID, PayableAmount, PayableAmountCurrencyID);
+            exit;
+        end;
+
+        VATAmtLine.Reset();
+        if VATAmtLine.FindSet() then
+            repeat
+                if Escompte.IsCompensationLine(VATAmtLine) then
+                    CompensationAmount += VATAmtLine."VAT Base"
+                else begin
+                    RealVATBase += VATAmtLine."VAT Base";
+                    RealInvDiscount += VATAmtLine."Invoice Discount Amount";
+                    RealPmtDiscount += VATAmtLine."Pmt. Discount Amount";
+                    RealAmtInclVAT += VATAmtLine."Amount Including VAT";
+                end;
+            until VATAmtLine.Next() = 0;
+
+        CurrencyId := Escompte.DocumentCurrencyCode(SalesHeader);
+
+        LineExtensionAmount := Format(Round(RealVATBase, 0.01) + Round(RealInvDiscount, 0.01), 0, 9);
+        LegalMonetaryTotalCurrencyID := CurrencyId;
+
+        TaxExclusiveAmount := Format(Round(RealVATBase - RealPmtDiscount + CompensationAmount, 0.01), 0, 9);
+        TaxExclusiveAmountCurrencyID := CurrencyId;
+
+        TaxInclusiveAmount := Format(Round(RealAmtInclVAT - RealPmtDiscount + CompensationAmount, 0.01, '>'), 0, 9);
+        TaxInclusiveAmountCurrencyID := CurrencyId;
+
+        AllowanceTotalAmount := Format(Round(RealInvDiscount + RealPmtDiscount, 0.01), 0, 9);
+        AllowanceTotalAmountCurrencyID := CurrencyId;
+
+        ChargeTotalAmount := Format(Round(CompensationAmount, 0.01), 0, 9);
+        ChargeTotalAmountCurrencyID := CurrencyId;
+
+        PrepaidAmount := '0.00';
+        PrepaidCurrencyID := CurrencyId;
+
+        if TempSalesLine."Line No." = 0 then begin
+            PayableRoundingAmount := Format(RealAmtInclVAT - Round(RealAmtInclVAT, 0.01), 0, 9);
+            PayableRndingAmountCurrencyID := CurrencyId;
+            PayableAmount := Format(Round(RealAmtInclVAT - RealPmtDiscount + CompensationAmount, 0.01), 0, 9);
+            PayableAmountCurrencyID := CurrencyId;
+        end else begin
+            PayableRoundingAmount := Format(TempSalesLine."Amount Including VAT", 0, 9);
+            PayableRndingAmountCurrencyID := CurrencyId;
+            PayableAmount := Format(Round(RealAmtInclVAT + TempSalesLine."Amount Including VAT" - RealPmtDiscount + CompensationAmount, 0.01), 0, 9);
+            PayableAmountCurrencyID := CurrencyId;
+        end;
+    end;
+
+    procedure GetLegalMonetaryDocAmounts(SalesHeader: Record "Sales Header"; var VATAmtLine: Record "VAT Amount Line"; var LineExtensionAmount: Text; var LegalMonetaryTotalCurrencyID: Text; var TaxExclusiveAmount: Text; var TaxExclusiveAmountCurrencyID: Text; var TaxInclusiveAmount: Text; var TaxInclusiveAmountCurrencyID: Text; var AllowanceTotalAmount: Text; var AllowanceTotalAmountCurrencyID: Text; var ChargeTotalAmount: Text; var ChargeTotalAmountCurrencyID: Text)
+    begin
+        PEPPOL30.GetLegalMonetaryDocAmounts(SalesHeader, VATAmtLine, LineExtensionAmount, LegalMonetaryTotalCurrencyID, TaxExclusiveAmount, TaxExclusiveAmountCurrencyID, TaxInclusiveAmount, TaxInclusiveAmountCurrencyID, AllowanceTotalAmount, AllowanceTotalAmountCurrencyID, ChargeTotalAmount, ChargeTotalAmountCurrencyID);
+    end;
+
+    procedure GetInvoiceRoundingLine(var TempSalesLine: Record "Sales Line" temporary; SalesLine: Record "Sales Line")
+    begin
+        PEPPOL30.GetInvoiceRoundingLine(TempSalesLine, SalesLine);
+    end;
+
+    local procedure HasCompensationLine(var VATAmtLine: Record "VAT Amount Line"): Boolean
+    var
+        Found: Boolean;
+    begin
+        VATAmtLine.Reset();
+        VATAmtLine.SetRange("VAT Identifier", Escompte.GetCompensationVATIdentifier());
+        Found := not VATAmtLine.IsEmpty();
+        VATAmtLine.Reset();
+        exit(Found);
+    end;
+}
diff --git a/src/Apps/BE/PeppolBE/App/src/PEPPOL30BEPaymentInfo.Codeunit.al b/src/Apps/BE/PeppolBE/App/src/PEPPOL30BEPaymentInfo.Codeunit.al
new file mode 100644
index 00000000000..58735b34b65
--- /dev/null
+++ b/src/Apps/BE/PeppolBE/App/src/PEPPOL30BEPaymentInfo.Codeunit.al
@@ -0,0 +1,67 @@
+// ------------------------------------------------------------------------------------------------
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License. See License.txt in the project root for license information.
+// ------------------------------------------------------------------------------------------------
+namespace Microsoft.Peppol.BE;
+
+using Microsoft.Finance.VAT.Calculation;
+using Microsoft.Peppol;
+using Microsoft.Sales.Document;
+
+/// <summary>
+/// Belgian PEPPOL payment info provider. Delegates every method to the default PEPPOL30 implementation, except that it renders an extra escompte compensation line (see "PEPPOL30 BE Escompte")
+/// </summary>
+codeunit 37317 "PEPPOL30 BE Payment Info" implements "PEPPOL Payment Info Provider"
+{
+    Access = Internal;
+    InherentEntitlements = X;
+    InherentPermissions = X;
+
+    var
+        PEPPOL30: Codeunit "PEPPOL30";
+        Escompte: Codeunit "PEPPOL30 BE Escompte";
+
+    procedure GetPaymentMeansInfo(SalesHeader: Record "Sales Header"; var PaymentMeansCode: Text; var PaymentMeansListID: Text; var PaymentDueDate: Text; var PaymentChannelCode: Text; var PaymentID: Text; var PrimaryAccountNumberID: Text; var NetworkID: Text)
+    begin
+        PEPPOL30.GetPaymentMeansInfo(SalesHeader, PaymentMeansCode, PaymentMeansListID, PaymentDueDate, PaymentChannelCode, PaymentID, PrimaryAccountNumberID, NetworkID);
+    end;
+
+    procedure GetPaymentMeansPayeeFinancialAcc(var PayeeFinancialAccountID: Text; var PaymentMeansSchemeID: Text; var FinancialInstitutionBranchID: Text; var FinancialInstitutionID: Text; var FinancialInstitutionSchemeID: Text; var FinancialInstitutionName: Text)
+    begin
+        PEPPOL30.GetPaymentMeansPayeeFinancialAcc(PayeeFinancialAccountID, PaymentMeansSchemeID, FinancialInstitutionBranchID, FinancialInstitutionID, FinancialInstitutionSchemeID, FinancialInstitutionName);
+    end;
+
+    procedure GetPaymentMeansPayeeFinancialAccBIS(SalesHeader: Record "Sales Header"; var PayeeFinancialAccountID: Text; var FinancialInstitutionBranchID: Text)
+    begin
+        PEPPOL30.GetPaymentMeansPayeeFinancialAccBIS(SalesHeader, PayeeFinancialAccountID, FinancialInstitutionBranchID);
+    end;
+
+    procedure GetPaymentMeansFinancialInstitutionAddr(var FinancialInstitutionStreetName: Text; var AdditionalStreetName: Text; var FinancialInstitutionCityName: Text; var FinancialInstitutionPostalZone: Text; var FinancialInstCountrySubentity: Text; var FinancialInstCountryIdCode: Text; var FinancialInstCountryListID: Text)
+    begin
+        PEPPOL30.GetPaymentMeansFinancialInstitutionAddr(FinancialInstitutionStreetName, AdditionalStreetName, FinancialInstitutionCityName, FinancialInstitutionPostalZone, FinancialInstCountrySubentity, FinancialInstCountryIdCode, FinancialInstCountryListID);
+    end;
+
+    procedure GetPaymentTermsInfo(SalesHeader: Record "Sales Header"; var PaymentTermsNote: Text)
+    begin
+        PEPPOL30.GetPaymentTermsInfo(SalesHeader, PaymentTermsNote);
+    end;
+
+    procedure GetAllowanceChargeInfoPaymentDiscount(VATAmtLine: Record "VAT Amount Line"; SalesHeader: Record "Sales Header"; var ChargeIndicator: Text; var AllowanceChargeReasonCode: Text; var AllowanceChargeListID: Text; var AllowanceChargeReason: Text; var Amount: Text; var AllowanceChargeCurrencyID: Text; var TaxCategoryID: Text; var TaxCategorySchemeID: Text; var Percent: Text; var AllowanceChargeTaxSchemeID: Text)
+    begin
+        if Escompte.IsCompensationLine(VATAmtLine) then begin
+            ChargeIndicator := 'true';
+            AllowanceChargeReasonCode := '';
+            AllowanceChargeListID := '';
+            AllowanceChargeReason := Escompte.GetCompensationChargeReason();
+            Amount := Format(VATAmtLine."VAT Base", 0, 9);
+            AllowanceChargeCurrencyID := Escompte.DocumentCurrencyCode(SalesHeader);
+            TaxCategoryID := VATAmtLine."Tax Category";
+            TaxCategorySchemeID := '';
+            Percent := Format(VATAmtLine."VAT %", 0, 9);
+            AllowanceChargeTaxSchemeID := 'VAT';
+            exit;
+        end;
+
+        PEPPOL30.GetAllowanceChargeInfoPaymentDiscount(VATAmtLine, SalesHeader, ChargeIndicator, AllowanceChargeReasonCode, AllowanceChargeListID, AllowanceChargeReason, Amount, AllowanceChargeCurrencyID, TaxCategoryID, TaxCategorySchemeID, Percent, AllowanceChargeTaxSchemeID);
+    end;
+}
diff --git a/src/Apps/BE/PeppolBE/App/src/PEPPOL30BETaxInfo.Codeunit.al b/src/Apps/BE/PeppolBE/App/src/PEPPOL30BETaxInfo.Codeunit.al
index 0a0225d8e58..5a1481cc64a 100644
--- a/src/Apps/BE/PeppolBE/App/src/PEPPOL30BETaxInfo.Codeunit.al
+++ b/src/Apps/BE/PeppolBE/App/src/PEPPOL30BETaxInfo.Codeunit.al
@@ -10,9 +10,10 @@ using Microsoft.Peppol;
 using Microsoft.Sales.Document;
 
 /// <summary>
-/// Belgian PEPPOL tax info provider. Delegates every method to the default PEPPOL30 implementation,
-/// except that it excludes the payment discount from the tax totals so that the PEPPOL document totals
-/// (TaxableAmount, TaxExclusiveAmount, TaxInclusiveAmount, PayableAmount) match the invoice printout.
+/// Belgian PEPPOL tax info provider. Delegates every method to the default PEPPOL30 implementation and,
+/// via FinalizeTaxTotals, appends a compensating Exempt (category E) VAT breakdown line for the
+/// conditional payment discount (escompte). This keeps VAT on the discounted base (as required in
+/// Belgium) while the amount payable stays whole.
 /// </summary>
 codeunit 37315 "PEPPOL30 BE Tax Info" implements "PEPPOL Tax Info Provider"
 {
@@ -22,6 +23,7 @@ codeunit 37315 "PEPPOL30 BE Tax Info" implements "PEPPOL Tax Info Provider"
 
     var
         PEPPOL30: Codeunit "PEPPOL30";
+        Escompte: Codeunit "PEPPOL30 BE Escompte";
 
     procedure GetAllowanceChargeInfo(VATAmtLine: Record "VAT Amount Line"; SalesHeader: Record "Sales Header"; var ChargeIndicator: Text; var AllowanceChargeReasonCode: Text; var AllowanceChargeListID: Text; var AllowanceChargeReason: Text; var Amount: Text; var AllowanceChargeCurrencyID: Text; var TaxCategoryID: Text; var TaxCategorySchemeID: Text; var Percent: Text; var AllowanceChargeTaxSchemeID: Text)
     begin
@@ -55,14 +57,33 @@ codeunit 37315 "PEPPOL30 BE Tax Info" implements "PEPPOL Tax Info Provider"
 
     procedure GetTaxTotals(SalesLine: Record "Sales Line"; var VATAmtLine: Record "VAT Amount Line")
     begin
-        // In Belgium the payment discount must not reduce the PEPPOL document totals. Zeroing the payment
-        // discount on the by-value sales line before accumulation keeps TaxableAmount, TaxExclusiveAmount,
-        // TaxInclusiveAmount and PayableAmount aligned with the invoice printout, and the payment discount
-        // AllowanceCharge is skipped by its existing zero-amount guard.
-        SalesLine."Pmt. Discount Amount" := 0;
         PEPPOL30.GetTaxTotals(SalesLine, VATAmtLine);
     end;
 
+    procedure FinalizeTaxTotals(var VATAmtLine: Record "VAT Amount Line")
+    var
+        TotalPmtDiscount: Decimal;
+    begin
+        VATAmtLine.Reset();
+        VATAmtLine.CalcSums("Pmt. Discount Amount");
+        TotalPmtDiscount := VATAmtLine."Pmt. Discount Amount";
+        if TotalPmtDiscount = 0 then
+            exit;
+
+        VATAmtLine.Init();
+        VATAmtLine."VAT Identifier" := Escompte.GetCompensationVATIdentifier();
+        VATAmtLine."VAT Calculation Type" := VATAmtLine."VAT Calculation Type"::"Normal VAT";
+        VATAmtLine.Positive := true;
+        VATAmtLine."Tax Category" := Escompte.GetExemptTaxCategory();
+        VATAmtLine."VAT %" := 0;
+        VATAmtLine."VAT Base" := TotalPmtDiscount;
+        VATAmtLine."Amount Including VAT" := TotalPmtDiscount;
+        VATAmtLine."VAT Amount" := 0;
+        VATAmtLine."Pmt. Discount Amount" := 0;
+        VATAmtLine."Invoice Discount Amount" := 0;
+        VATAmtLine.Insert();
+    end;
+
     procedure GetTaxCategories(SalesLine: Record "Sales Line"; var VATProductPostingGroupCategory: Record "VAT Product Posting Group")
     begin
         PEPPOL30.GetTaxCategories(SalesLine, VATProductPostingGroupCategory);
@@ -73,6 +94,16 @@ codeunit 37315 "PEPPOL30 BE Tax Info" implements "PEPPOL Tax Info Provider"
         PEPPOL30.GetTaxExemptionReason(VATProductPostingGroupCategory, TaxExemptionReasonTxt, TaxCategoryID);
     end;
 
+    procedure GetTaxExemptionReason(VATAmtLine: Record "VAT Amount Line"; var VATProductPostingGroupCategory: Record "VAT Product Posting Group"; var TaxExemptionReasonTxt: Text; TaxCategoryID: Text)
+    begin
+        if Escompte.IsCompensationLine(VATAmtLine) then begin
+            TaxExemptionReasonTxt := Escompte.GetCompensationExemptionReason();
+            exit;
+        end;
+
+        GetTaxExemptionReason(VATProductPostingGroupCategory, TaxExemptionReasonTxt, TaxCategoryID);
+    end;
+
     procedure IsZeroVatCategory(TaxCategory: Code[10]): Boolean
     begin
         exit(PEPPOL30.IsZeroVatCategory(TaxCategory));
diff --git a/src/Apps/BE/PeppolBE/App/src/PEPPOL30FormatBE.EnumExt.al b/src/Apps/BE/PeppolBE/App/src/PEPPOL30FormatBE.EnumExt.al
index c7a210deaa3..a2379581e0c 100644
--- a/src/Apps/BE/PeppolBE/App/src/PEPPOL30FormatBE.EnumExt.al
+++ b/src/Apps/BE/PeppolBE/App/src/PEPPOL30FormatBE.EnumExt.al
@@ -13,13 +13,17 @@ enumextension 37310 "PEPPOL 3.0 Format BE" extends "PEPPOL 3.0 Format"
         Caption = 'PEPPOL 3.0 - Belgium Sales Format';
         Implementation = "PEPPOL30 Validation" = "PEPPOL30 BE Sales Validation",
                         "PEPPOL Posted Document Iterator" = "PEPPOL30 Sales Iterator",
-                        "PEPPOL Tax Info Provider" = "PEPPOL30 BE Tax Info";
+                        "PEPPOL Tax Info Provider" = "PEPPOL30 BE Tax Info",
+                        "PEPPOL Payment Info Provider" = "PEPPOL30 BE Payment Info",
+                        "PEPPOL Monetary Info Provider" = "PEPPOL30 BE Monetary Info";
     }
     value(37311; "PEPPOL 3.0 - BE Service")
     {
         Caption = 'PEPPOL 3.0 - Belgium Service Format';
         Implementation = "PEPPOL30 Validation" = "PEPPOL30 BE Service Validation",
                         "PEPPOL Posted Document Iterator" = "PEPPOL30 Services Iterator",
-                        "PEPPOL Tax Info Provider" = "PEPPOL30 BE Tax Info";
+                        "PEPPOL Tax Info Provider" = "PEPPOL30 BE Tax Info",
+                        "PEPPOL Payment Info Provider" = "PEPPOL30 BE Payment Info",
+                        "PEPPOL Monetary Info Provider" = "PEPPOL30 BE Monetary Info";
     }
 }
diff --git a/src/Apps/BE/PeppolBE/Test/app.json b/src/Apps/BE/PeppolBE/Test/app.json
new file mode 100644
index 00000000000..dc7ec56b364
--- /dev/null
+++ b/src/Apps/BE/PeppolBE/Test/app.json
@@ -0,0 +1,48 @@
+{
+  "id": "140aecf2-70e7-4ea8-93ee-78dd27659bee",
+  "name": "PEPPOL BE Tests",
+  "publisher": "Microsoft",
+  "version": "29.0.0.0",
+  "brief": "Tests for the PEPPOL BIS 3.0 BE localization.",
+  "description": "Tests for the PEPPOL BIS 3.0 BE localization.",
+  "privacyStatement": "https://go.microsoft.com/fwlink/?LinkId=724009",
+  "EULA": "https://go.microsoft.com/fwlink/?linkid=2009120",
+  "help": "https://go.microsoft.com/fwlink/?linkid=2104024",
+  "contextSensitiveHelpUrl": "https://go.microsoft.com/fwlink/?linkid=2206603",
+  "url": "https://go.microsoft.com/fwlink/?LinkId=724011",
+  "dependencies": [
+    {
+      "id": "5d86850b-0d76-4eca-bd7b-951ad998e997",
+      "name": "Tests-TestLibraries",
+      "publisher": "Microsoft",
+      "version": "29.0.0.0"
+    },
+    {
+      "id": "e1966889-b5fb-4fda-a84c-ea71b590e1a9",
+      "name": "PEPPOL",
+      "publisher": "Microsoft",
+      "version": "29.0.0.0"
+    },
+    {
+      "id": "e56642d4-5b38-4de1-8cf4-b2ed9513971a",
+      "name": "PEPPOL BE",
+      "publisher": "Microsoft",
+      "version": "29.0.0.0"
+    }
+  ],
+  "screenshots": [],
+  "platform": "29.0.0.0",
+  "application": "29.0.0.0",
+  "idRanges": [
+    {
+      "from": 148720,
+      "to": 148729
+    }
+  ],
+  "resourceExposurePolicy": {
+    "allowDebugging": true,
+    "allowDownloadingSource": true,
+    "includeSourceInSymbolFile": true
+  },
+  "target": "OnPrem"
+}
diff --git a/src/Apps/BE/PeppolBE/Test/src/PEPPOL30BEPmtDiscountTests.Codeunit.al b/src/Apps/BE/PeppolBE/Test/src/PEPPOL30BEPmtDiscountTests.Codeunit.al
index 0bc6e3a79b8..98ebd780468 100644
--- a/src/Apps/BE/PeppolBE/Test/src/PEPPOL30BEPmtDiscountTests.Codeunit.al
+++ b/src/Apps/BE/PeppolBE/Test/src/PEPPOL30BEPmtDiscountTests.Codeunit.al
@@ -38,17 +38,19 @@ codeunit 148720 "PEPPOL30 BE Pmt Disc Tests"
         LibraryTestInitialize: Codeunit "Library - Test Initialize";
         IsInitialized: Boolean;
         InvoiceNamespaceTxt: Label 'urn:oasis:names:specification:ubl:schema:xsd:Invoice-2', Locked = true;
+        EscompteExemptionReasonTxt: Label 'Conditional early-payment discount, not part of the taxable amount';
+        ExemptionReasonXPathTxt: Label '//cac:TaxTotal/cac:TaxSubtotal/cac:TaxCategory/cbc:TaxExemptionReason', Locked = true;
+        GenuineExemptionReasonTxt: Label 'Exempt under article 44', Locked = true;
 
     [Test]
-    procedure PaymentDiscountNotDeductedFromTaxAmountsForBESalesInvoice()
+    procedure BESalesInvoiceEscompteCompensation()
     var
         SalesInvoiceHeader: Record "Sales Invoice Header";
         TempBlob: Codeunit "Temp Blob";
         CustomerNo: Code[20];
         PaymentTermsCode: Code[10];
     begin
-        // [SCENARIO 643204] For the Belgian PEPPOL format the taxable amount is calculated on the full amount,
-        // i.e. the payment discount is NOT deducted from the VAT-taxable base, so the XML matches the invoice printout.
+        // [SCENARIO 643204] The Belgian escompte keeps VAT on the discounted base, but the conditional payment discount must not reduce the amount payable.
         Initialize();
 
         // [GIVEN] Payment Terms with a 3% payment discount
@@ -56,23 +58,102 @@ codeunit 148720 "PEPPOL30 BE Pmt Disc Tests"
         // [GIVEN] A customer that uses those payment terms
         CustomerNo := CreateCustomerWithAddressAndGLN();
 
-        // [GIVEN] A posted sales invoice for 1 x 111.20 EUR with 21% VAT and the 3% payment discount terms
+        // [GIVEN] A posted sales invoice for 1 x 111.20 with 21% VAT and the 3% payment discount terms; the escompte
+        // is active so VAT is charged on the discounted base 107.86 (VAT 22.65, total 133.85).
         PostSalesInvoiceWithPmtDiscount(SalesInvoiceHeader, CustomerNo, PaymentTermsCode, 111.2, 21);
 
         // [WHEN] The posted invoice is exported to PEPPOL BIS 3.0 using the Belgian sales format
         SalesInvoiceHeader.SetRecFilter();
         ExportInvoiceToBlob(SalesInvoiceHeader, TempBlob);
-
-        // [THEN] The taxable/monetary totals are calculated on the full amount (111.20 / 134.55),
-        // and NOT reduced by the payment discount (which would give 107.86 / 131.21 and fail BR-S-08).
         InitXPathXMLReaderForInvoice(TempBlob);
+
+        // [THEN] Two VAT breakdowns: Standard 107.86 / 22.65 and the compensating Exempt 3.34 / 0.00 (with a reason)
+        LibraryXPathXMLReader.VerifyNodeCountByXPath('//cac:TaxTotal/cac:TaxSubtotal', 2);
+        LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:TaxTotal/cbc:TaxAmount', '22.65');
+        LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:TaxSubtotal[cac:TaxCategory/cbc:ID=''S'']/cbc:TaxableAmount', '107.86');
+        LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:TaxSubtotal[cac:TaxCategory/cbc:ID=''S'']/cbc:TaxAmount', '22.65');
+        LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:TaxSubtotal[cac:TaxCategory/cbc:ID=''E'']/cbc:TaxableAmount', '3.34');
+        LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:TaxSubtotal[cac:TaxCategory/cbc:ID=''E'']/cbc:TaxAmount', '0.00');
+        LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:TaxSubtotal[cac:TaxCategory/cbc:ID=''E'']/cac:TaxCategory/cbc:TaxExemptionReason', EscompteExemptionReasonTxt);
+
+        // [THEN] Two document-level AllowanceCharges: the Standard payment-discount allowance and the Exempt compensating charge
+        LibraryXPathXMLReader.VerifyNodeCountByXPath('//cac:AllowanceCharge', 2);
+        LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:AllowanceCharge[cbc:ChargeIndicator=''false'']/cbc:Amount', '3.34');
+        LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:AllowanceCharge[cbc:ChargeIndicator=''true'']/cbc:Amount', '3.34');
+        LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:AllowanceCharge[cbc:ChargeIndicator=''true'']/cac:TaxCategory/cbc:ID', 'E');
+        // [THEN] The compensating charge carries only a text reason - no (empty) reason code element is emitted
+        LibraryXPathXMLReader.VerifyNodeCountByXPath('//cac:AllowanceCharge[cbc:ChargeIndicator=''true'']/cbc:AllowanceChargeReasonCode', 0);
+
+        // [THEN] The amount payable stays whole: LineExtension/TaxExclusive 111.20, Allowance & Charge 3.34, total 133.85
         LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:LegalMonetaryTotal/cbc:LineExtensionAmount', '111.2');
         LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:LegalMonetaryTotal/cbc:TaxExclusiveAmount', '111.2');
-        LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:LegalMonetaryTotal/cbc:TaxInclusiveAmount', '134.55');
-        LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:LegalMonetaryTotal/cbc:PayableAmount', '134.55');
-        // [THEN] The tax subtotal taxable amount equals the full amount and no payment-discount allowance is emitted
-        LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:TaxTotal/cac:TaxSubtotal/cbc:TaxableAmount', '111.2');
-        LibraryXPathXMLReader.VerifyNodeAbsence('//cac:AllowanceCharge');
+        LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:LegalMonetaryTotal/cbc:AllowanceTotalAmount', '3.34');
+        LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:LegalMonetaryTotal/cbc:ChargeTotalAmount', '3.34');
+        LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:LegalMonetaryTotal/cbc:TaxInclusiveAmount', '133.85');
+        LibraryXPathXMLReader.VerifyNodeValueByXPath('//cac:LegalMonetaryTotal/cbc:PayableAmount', '133.85');
+    end;
+
+    [Test]
+    procedure BESalesInvoiceExemptLineKeepsOwnExemptionReason()
+    var
+        SalesInvoiceHeader: Record "Sales Invoice Header";
+        TempBlob: Codeunit "Temp Blob";
+        CustomerNo: Code[20];
+        PaymentTermsCode: Code[10];
+    begin
+        // [SCENARIO 643204] A genuinely exempt VAT breakdown keeps its own exemption reason when the escompte compensation is present.
+        Initialize();
+
+        // [GIVEN] Payment Terms with a 3% payment discount and a customer that uses them
+        PaymentTermsCode := CreatePaymentTermsWithDiscount(3);
+        CustomerNo := CreateCustomerWithAddressAndGLN();
+
+        // [GIVEN] A posted sales invoice with a 21% line and an exempt (category E) line whose VAT product posting group is described
+        PostSalesInvoice(
+          SalesInvoiceHeader, CustomerNo, PaymentTermsCode,
+          CreateVATPostingSetupWithPmtDiscount(GetVATBusPostingGroup(CustomerNo), 21), 111.2,
+          CreateExemptVATPostingSetup(GetVATBusPostingGroup(CustomerNo), GenuineExemptionReasonTxt), 100);
+
+        // [WHEN] The posted invoice is exported to PEPPOL BIS 3.0 using the Belgian sales format
+        SalesInvoiceHeader.SetRecFilter();
+        ExportInvoiceToBlob(SalesInvoiceHeader, TempBlob);
+        InitXPathXMLReaderForInvoice(TempBlob);
+
+        // [THEN] Three VAT breakdowns are written: Standard, the genuine Exempt one and the compensating Exempt one
+        LibraryXPathXMLReader.VerifyNodeCountByXPath('//cac:TaxTotal/cac:TaxSubtotal', 3);
+
+        // [THEN] The escompte reason is used once, and the genuine exempt breakdown keeps the reason from its VAT product posting group
+        LibraryXPathXMLReader.VerifyNodeCountWithValueByXPath(ExemptionReasonXPathTxt, EscompteExemptionReasonTxt, 1);
+        LibraryXPathXMLReader.VerifyNodeCountWithValueByXPath(ExemptionReasonXPathTxt, GenuineExemptionReasonTxt, 1);
+    end;
+
+    [Test]
+    procedure BESalesInvoiceWithoutPmtDiscountHasNoEscompteReason()
+    var
+        SalesInvoiceHeader: Record "Sales Invoice Header";
+        TempBlob: Codeunit "Temp Blob";
+        CustomerNo: Code[20];
+    begin
+        // [SCENARIO 643204] An exempt VAT breakdown without an exemption reason is not given the escompte reason when there is no payment discount.
+        Initialize();
+
+        // [GIVEN] A customer without payment discount terms
+        CustomerNo := CreateCustomerWithAddressAndGLN();
+
+        // [GIVEN] A posted sales invoice with a single exempt (category E) line whose VAT product posting group has no description
+        PostSalesInvoice(
+          SalesInvoiceHeader, CustomerNo, '',
+          CreateExemptVATPostingSetup(GetVATBusPostingGroup(CustomerNo), ''), 100,
+          '', 0);
+
+        // [WHEN] The posted invoice is exported to PEPPOL BIS 3.0 using the Belgian sales format
+        SalesInvoiceHeader.SetRecFilter();
+        ExportInvoiceToBlob(SalesInvoiceHeader, TempBlob);
+        InitXPathXMLReaderForInvoice(TempBlob);
+
+        // [THEN] The single Exempt breakdown is not given the escompte exemption reason
+        LibraryXPathXMLReader.VerifyNodeCountByXPath('//cac:TaxTotal/cac:TaxSubtotal', 1);
+        LibraryXPathXMLReader.VerifyNodeCountWithValueByXPath(ExemptionReasonXPathTxt, EscompteExemptionReasonTxt, 0);
     end;
 
     local procedure Initialize()
@@ -100,6 +181,9 @@ codeunit 148720 "PEPPOL30 BE Pmt Disc Tests"
             CompanyInformation."VAT Registration No." := LibraryERM.GenerateVATRegistrationNo(CompanyInformation."Country/Region Code");
         CompanyInformation.Validate(GLN, '1234567891231');
         CompanyInformation.Validate("Use GLN in Electronic Document", true);
+        CompanyInformation."Bank Account No." := '1234567890';
+        CompanyInformation."Bank Branch No." := '1234';
+        CompanyInformation."SWIFT Code" := 'GEBABEBB';
         CompanyInformation.Modify(true);
 
         LibraryERMCountryData.CreateVATData();
@@ -108,7 +192,7 @@ codeunit 148720 "PEPPOL30 BE Pmt Disc Tests"
         LibraryERMCountryData.UpdateSalesReceivablesSetup();
         LibraryERMCountryData.UpdateLocalData();
 
-        EnableAdjustForPaymentDiscount();
+        EnableBEPaymentDiscountVAT();
 
         LibrarySetupStorage.Save(Database::"Company Information");
         LibrarySetupStorage.Save(Database::"General Ledger Setup");
@@ -128,13 +212,16 @@ codeunit 148720 "PEPPOL30 BE Pmt Disc Tests"
         PEPPOLSetup.Modify();
     end;
 
-    local procedure EnableAdjustForPaymentDiscount()
+    local procedure EnableBEPaymentDiscountVAT()
     var
         GeneralLedgerSetup: Record "General Ledger Setup";
     begin
+        // Belgian escompte: VAT is charged on the discounted base. 
         GeneralLedgerSetup.Get();
-        GeneralLedgerSetup."Adjust for Payment Disc." := true;
-        GeneralLedgerSetup.Modify();
+        GeneralLedgerSetup.Validate("Adjust for Payment Disc.", false);
+        GeneralLedgerSetup.Validate("Pmt. Disc. Excl. VAT", true);
+        GeneralLedgerSetup.Validate("VAT Tolerance %", 3);
+        GeneralLedgerSetup.Modify(true);
     end;
 
     local procedure CreatePaymentTermsWithDiscount(DiscountPct: Decimal): Code[10]
@@ -178,9 +265,15 @@ codeunit 148720 "PEPPOL30 BE Pmt Disc Tests"
     end;
 
     local procedure PostSalesInvoiceWithPmtDiscount(var SalesInvoiceHeader: Record "Sales Invoice Header"; CustomerNo: Code[20]; PaymentTermsCode: Code[10]; UnitPrice: Decimal; VATPct: Decimal)
+    begin
+        PostSalesInvoice(
+          SalesInvoiceHeader, CustomerNo, PaymentTermsCode,
+          CreateVATPostingSetupWithPmtDiscount(GetVATBusPostingGroup(CustomerNo), VATPct), UnitPrice, '', 0);
+    end;
+
+    local procedure PostSalesInvoice(var SalesInvoiceHeader: Record "Sales Invoice Header"; CustomerNo: Code[20]; PaymentTermsCode: Code[10]; FirstVATProdPostingGroup: Code[20]; FirstUnitPrice: Decimal; SecondVATProdPostingGroup: Code[20]; SecondUnitPrice: Decimal)
     var
         SalesHeader: Record "Sales Header";
-        SalesLine: Record "Sales Line";
     begin
         LibrarySales.CreateSalesHeader(SalesHeader, SalesHeader."Document Type"::Invoice, CustomerNo);
         SalesHeader.Validate("Payment Terms Code", PaymentTermsCode);
@@ -188,13 +281,49 @@ codeunit 148720 "PEPPOL30 BE Pmt Disc Tests"
         SalesHeader.Validate("Your Reference", LibraryUtility.GenerateGUID());
         SalesHeader.Modify(true);
 
+        AddSalesLine(SalesHeader, FirstVATProdPostingGroup, FirstUnitPrice);
+        if SecondVATProdPostingGroup <> '' then
+            AddSalesLine(SalesHeader, SecondVATProdPostingGroup, SecondUnitPrice);
+
+        SalesInvoiceHeader.Get(LibrarySales.PostSalesDocument(SalesHeader, true, true));
+    end;
+
+    local procedure AddSalesLine(var SalesHeader: Record "Sales Header"; VATProdPostingGroup: Code[20]; UnitPrice: Decimal)
+    var
+        SalesLine: Record "Sales Line";
+    begin
         LibrarySales.CreateSalesLine(
           SalesLine, SalesHeader, SalesLine.Type::"G/L Account", LibraryERM.CreateGLAccountWithSalesSetup(), 1);
-        SalesLine.Validate("VAT Prod. Posting Group", CreateVATPostingSetupWithPmtDiscount(SalesHeader."VAT Bus. Posting Group", VATPct));
+        SalesLine.Validate("VAT Prod. Posting Group", VATProdPostingGroup);
         SalesLine.Validate("Unit Price", UnitPrice);
         SalesLine.Modify(true);
+    end;
 
-        SalesInvoiceHeader.Get(LibrarySales.PostSalesDocument(SalesHeader, true, true));
+    local procedure GetVATBusPostingGroup(CustomerNo: Code[20]): Code[20]
+    var
+        Customer: Record Customer;
+    begin
+        Customer.Get(CustomerNo);
+        exit(Customer."VAT Bus. Posting Group");
+    end;
+
+    local procedure CreateExemptVATPostingSetup(VATBusPostingGroup: Code[20]; ProductPostingGroupDescription: Text[100]): Code[20]
+    var
+        VATPostingSetup: Record "VAT Posting Setup";
+        VATProductPostingGroup: Record "VAT Product Posting Group";
+    begin
+        LibraryERM.CreateVATProductPostingGroup(VATProductPostingGroup);
+        VATProductPostingGroup.Validate(Description, ProductPostingGroupDescription);
+        VATProductPostingGroup.Modify(true);
+
+        LibraryERM.CreateVATPostingSetup(VATPostingSetup, VATBusPostingGroup, VATProductPostingGroup.Code);
+        VATPostingSetup."VAT Identifier" := LibraryUtility.GenerateGUID();
+        VATPostingSetup.Validate("VAT Calculation Type", VATPostingSetup."VAT Calculation Type"::"Normal VAT");
+        VATPostingSetup.Validate("VAT %", 0);
+        VATPostingSetup.Validate("Tax Category", 'E');
+        VATPostingSetup.Validate("Sales VAT Account", LibraryERM.CreateGLAccountNo());
+        VATPostingSetup.Modify(true);
+        exit(VATProductPostingGroup.Code);
     end;
 
     local procedure CreateVATPostingSetupWithPmtDiscount(VATBusPostingGroup: Code[20]; VATPct: Decimal): Code[20]
@@ -208,7 +337,6 @@ codeunit 148720 "PEPPOL30 BE Pmt Disc Tests"
         VATPostingSetup.Validate("VAT Calculation Type", VATPostingSetup."VAT Calculation Type"::"Normal VAT");
         VATPostingSetup.Validate("VAT %", VATPct);
         VATPostingSetup.Validate("Tax Category", 'S');
-        VATPostingSetup."Adjust for Payment Discount" := true;
         VATPostingSetup.Validate("Sales VAT Account", LibraryERM.CreateGLAccountNo());
         VATPostingSetup.Modify(true);
         exit(VATProductPostingGroup.Code);
diff --git a/src/Apps/W1/PEPPOL/App/src/Common/PEPPOL30Common.Codeunit.al b/src/Apps/W1/PEPPOL/App/src/Common/PEPPOL30Common.Codeunit.al
index a4298162c09..c7b44c0613e 100644
--- a/src/Apps/W1/PEPPOL/App/src/Common/PEPPOL30Common.Codeunit.al
+++ b/src/Apps/W1/PEPPOL/App/src/Common/PEPPOL30Common.Codeunit.al
@@ -197,6 +197,8 @@ codeunit 37218 "PEPPOL30 Common"
             else
                 Error(UnsupportedDocumentErr);
         end;
+
+        PEPPOLTaxInfoProvider.FinalizeTaxTotals(TempVATAmtLine);
     end;
 
     /// <summary>
diff --git a/src/Apps/W1/PEPPOL/App/src/Interfaces/PEPPOLTaxInfoProvider.Interface.al b/src/Apps/W1/PEPPOL/App/src/Interfaces/PEPPOLTaxInfoProvider.Interface.al
index 2512fa9f28a..3f923df2310 100644
--- a/src/Apps/W1/PEPPOL/App/src/Interfaces/PEPPOLTaxInfoProvider.Interface.al
+++ b/src/Apps/W1/PEPPOL/App/src/Interfaces/PEPPOLTaxInfoProvider.Interface.al
@@ -141,4 +141,26 @@ interface "PEPPOL Tax Info Provider"
     /// <param name="TaxCategory">The tax category code to check.</param>
     /// <returns>True if the tax category is outside VAT scope, false otherwise.</returns>
     procedure IsOutsideScopeVATCategory(TaxCategory: Code[10]): Boolean;
+
+    /// <summary>
+    /// Called once per document after all lines have been aggregated into the VAT amount line buffer,
+    /// letting a format append synthetic VAT breakdown lines if needed. Needed to add, for example, compensation lines.
+    /// </summary>
+    /// <param name="VATAmtLine">The accumulated VAT amount line buffer to post-process.</param>
+    procedure FinalizeTaxTotals(var VATAmtLine: Record "VAT Amount Line")
+    begin
+    end;
+
+    /// <summary>
+    /// Gets the tax exemption reason text for a given VAT breakdown. Unlike the overload without the VAT amount line,
+    /// this lets a format tell apart breakdowns that share the same tax category.
+    /// </summary>
+    /// <param name="VATAmtLine">The VAT amount line the tax subtotal is written from.</param>
+    /// <param name="VATProductPostingGroupCategory">The VAT product posting group category record.</param>
+    /// <param name="TaxExemptionReasonTxt">Returns the tax exemption reason text.</param>
+    /// <param name="TaxCategoryID">The tax category ID to get exemption reason for.</param>
+    procedure GetTaxExemptionReason(VATAmtLine: Record "VAT Amount Line"; var VATProductPostingGroupCategory: Record "VAT Product Posting Group"; var TaxExemptionReasonTxt: Text; TaxCategoryID: Text)
+    begin
+        this.GetTaxExemptionReason(VATProductPostingGroupCategory, TaxExemptionReasonTxt, TaxCategoryID);
+    end;
 }
diff --git a/src/Apps/W1/PEPPOL/App/src/Sales/XmlPorts/SalesCrMemoPEPPOL30.XmlPort.al b/src/Apps/W1/PEPPOL/App/src/Sales/XmlPorts/SalesCrMemoPEPPOL30.XmlPort.al
index 974f5d06ba1..078185236f5 100644
--- a/src/Apps/W1/PEPPOL/App/src/Sales/XmlPorts/SalesCrMemoPEPPOL30.XmlPort.al
+++ b/src/Apps/W1/PEPPOL/App/src/Sales/XmlPorts/SalesCrMemoPEPPOL30.XmlPort.al
@@ -1357,6 +1357,12 @@ xmlport 37200 "Sales Cr.Memo - PEPPOL30"
                 {
                     XmlName = 'AllowanceChargeReasonCode';
                     NamespacePrefix = 'cbc';
+
+                    trigger OnBeforePassVariable()
+                    begin
+                        if AllowanceChargeReasonCodePaymentDiscount = '' then
+                            currXMLport.Skip();
+                    end;
                 }
                 textelement(AllowanceChargeReasonPaymentDiscount)
                 {
@@ -1523,7 +1529,7 @@ xmlport 37200 "Sales Cr.Memo - PEPPOL30"
                           TaxCategoryPercent,
                           TaxTotalTaxSchemeID);
 
-                        PEPPOLTaxInfoProvider.GetTaxExemptionReason(TempVATProductPostingGroup, TaxExemptionReason, TaxTotalTaxCategoryID);
+                        PEPPOLTaxInfoProvider.GetTaxExemptionReason(TempVATAmtLine, TempVATProductPostingGroup, TaxExemptionReason, TaxTotalTaxCategoryID);
                     end;
                 }
 
diff --git a/src/Apps/W1/PEPPOL/App/src/Sales/XmlPorts/SalesInvoicePEPPOL30.XmlPort.al b/src/Apps/W1/PEPPOL/App/src/Sales/XmlPorts/SalesInvoicePEPPOL30.XmlPort.al
index cfa66824cdb..aad98473a85 100644
--- a/src/Apps/W1/PEPPOL/App/src/Sales/XmlPorts/SalesInvoicePEPPOL30.XmlPort.al
+++ b/src/Apps/W1/PEPPOL/App/src/Sales/XmlPorts/SalesInvoicePEPPOL30.XmlPort.al
@@ -1308,6 +1308,12 @@ xmlport 37201 "Sales Invoice - PEPPOL30"
                 {
                     XmlName = 'AllowanceChargeReasonCode';
                     NamespacePrefix = 'cbc';
+
+                    trigger OnBeforePassVariable()
+                    begin
+                        if AllowanceChargeReasonCodePaymentDiscount = '' then
+                            currXMLport.Skip();
+                    end;
                 }
                 textelement(AllowanceChargeReasonPaymentDiscount)
                 {
@@ -1474,7 +1480,7 @@ xmlport 37201 "Sales Invoice - PEPPOL30"
                           TaxCategoryPercent,
                           TaxTotalTaxSchemeID);
 
-                        PEPPOLTaxInfoProvider.GetTaxExemptionReason(TempVATProductPostingGroup, TaxExemptionReason, TaxTotalTaxCategoryID);
+                        PEPPOLTaxInfoProvider.GetTaxExemptionReason(TempVATAmtLine, TempVATProductPostingGroup, TaxExemptionReason, TaxTotalTaxCategoryID);
                     end;
                 }
 
diff --git a/src/Layers/BE/BaseApp/Sales/Peppol/PEPPOLManagement.Codeunit.al b/src/Layers/BE/BaseApp/Sales/Peppol/PEPPOLManagement.Codeunit.al
index c4e3b7a9cf0..8960699c51c 100644
--- a/src/Layers/BE/BaseApp/Sales/Peppol/PEPPOLManagement.Codeunit.al
+++ b/src/Layers/BE/BaseApp/Sales/Peppol/PEPPOLManagement.Codeunit.al
@@ -53,6 +53,9 @@ codeunit 1605 "PEPPOL Management"
         BICTxt: Label 'BIC', Locked = true;
         AllowanceChargeReasonCodeTxt: Label '104', Locked = true;
         AllowanceChargePaymentDiscountReasonCodeTxt: Label '95', Locked = true;
+        PmtDiscCompChargeReasonTxt: Label 'Payment discount not deducted from the amount payable';
+        PmtDiscCompExemptionReasonTxt: Label 'Conditional early-payment discount, not part of the taxable amount';
+        PmtDiscCompVATIdentifierTxt: Label 'ESCOMPTE-COMP', Locked = true;
         PaymentMeansFundsTransferCodeTxt: Label '31', Locked = true;
         GTINTxt: Label '0160', Locked = true;
         UoMforPieceINUNECERec20ListIDTxt: Label 'EA', Locked = true;
@@ -1025,6 +1028,20 @@ codeunit 1605 "PEPPOL Management"
     /// <param name="AllowanceChargeTaxSchemeID">Returns the tax scheme identifier.</param>
     procedure GetAllowanceChargeInfoPaymentDiscount(VATAmtLine: Record "VAT Amount Line"; SalesHeader: Record "Sales Header"; var ChargeIndicator: Text; var AllowanceChargeReasonCode: Text; var AllowanceChargeListID: Text; var AllowanceChargeReason: Text; var Amount: Text; var AllowanceChargeCurrencyID: Text; var TaxCategoryID: Text; var TaxCategorySchemeID: Text; var Percent: Text; var AllowanceChargeTaxSchemeID: Text)
     begin
+        if IsPmtDiscCompensationLine(VATAmtLine) then begin
+            ChargeIndicator := 'true';
+            AllowanceChargeReasonCode := '';
+            AllowanceChargeListID := '';
+            AllowanceChargeReason := PmtDiscCompChargeReasonTxt;
+            Amount := Format(VATAmtLine."VAT Base", 0, 9);
+            AllowanceChargeCurrencyID := GetSalesDocCurrencyCode(SalesHeader);
+            TaxCategoryID := VATAmtLine."Tax Category";
+            TaxCategorySchemeID := '';
+            Percent := Format(VATAmtLine."VAT %", 0, 9);
+            AllowanceChargeTaxSchemeID := VATTxt;
+            exit;
+        end;
+
         if VATAmtLine."Pmt. Discount Amount" = 0 then begin
             ChargeIndicator := '';
             exit;
@@ -1210,6 +1227,19 @@ codeunit 1605 "PEPPOL Management"
     /// <param name="PayableAmountCurrencyID">Returns the currency code for payable amount.</param>
     procedure GetLegalMonetaryInfo(SalesHeader: Record "Sales Header"; var TempSalesLine: Record "Sales Line" temporary; var VATAmtLine: Record "VAT Amount Line"; var LineExtensionAmount: Text; var LegalMonetaryTotalCurrencyID: Text; var TaxExclusiveAmount: Text; var TaxExclusiveAmountCurrencyID: Text; var TaxInclusiveAmount: Text; var TaxInclusiveAmountCurrencyID: Text; var AllowanceTotalAmount: Text; var AllowanceTotalAmountCurrencyID: Text; var ChargeTotalAmount: Text; var ChargeTotalAmountCurrencyID: Text; var PrepaidAmount: Text; var PrepaidCurrencyID: Text; var PayableRoundingAmount: Text; var PayableRndingAmountCurrencyID: Text; var PayableAmount: Text; var PayableAmountCurrencyID: Text)
     begin
+        if HasPmtDiscCompensationLine(VATAmtLine) then begin
+            CalcLegalMonetaryInfoWithCompensation(
+                SalesHeader, TempSalesLine, VATAmtLine, LineExtensionAmount, LegalMonetaryTotalCurrencyID,
+                TaxExclusiveAmount, TaxExclusiveAmountCurrencyID, TaxInclusiveAmount, TaxInclusiveAmountCurrencyID,
+                AllowanceTotalAmount, AllowanceTotalAmountCurrencyID, ChargeTotalAmount, ChargeTotalAmountCurrencyID,
+                PrepaidAmount, PrepaidCurrencyID, PayableRoundingAmount, PayableRndingAmountCurrencyID,
+                PayableAmount, PayableAmountCurrencyID);
+            OnAfterGetLegalMonetaryInfoWithInvRounding(
+              SalesHeader, TempSalesLine, VATAmtLine, LineExtensionAmount, TaxExclusiveAmount, TaxInclusiveAmount,
+              AllowanceTotalAmount, ChargeTotalAmount, PrepaidAmount, PayableRoundingAmount, PayableAmount);
+            exit;
+        end;
+
         VATAmtLine.Reset();
         VATAmtLine.CalcSums("Line Amount", "VAT Base", "Amount Including VAT", "Invoice Discount Amount");
 
@@ -1683,6 +1713,101 @@ codeunit 1605 "PEPPOL Management"
             end;
     end;
 
+    procedure AddPaymentDiscountCompensation(var VATAmtLine: Record "VAT Amount Line")
+    var
+        TotalPmtDiscount: Decimal;
+    begin
+        VATAmtLine.Reset();
+        VATAmtLine.CalcSums("Pmt. Discount Amount");
+        TotalPmtDiscount := VATAmtLine."Pmt. Discount Amount";
+        if TotalPmtDiscount = 0 then
+            exit;
+
+        VATAmtLine.Init();
+        VATAmtLine."VAT Identifier" := GetPmtDiscCompensationVATIdentifier();
+        VATAmtLine."VAT Calculation Type" := VATAmtLine."VAT Calculation Type"::"Normal VAT";
+        VATAmtLine.Positive := true;
+        VATAmtLine."Tax Category" := CopyStr(GetTaxCategoryE(), 1, MaxStrLen(VATAmtLine."Tax Category"));
+        VATAmtLine."VAT %" := 0;
+        VATAmtLine."VAT Base" := TotalPmtDiscount;
+        VATAmtLine."Amount Including VAT" := TotalPmtDiscount;
+        VATAmtLine."VAT Amount" := 0;
+        VATAmtLine."Pmt. Discount Amount" := 0;
+        VATAmtLine."Invoice Discount Amount" := 0;
+        VATAmtLine.Insert();
+    end;
+
+    local procedure GetPmtDiscCompensationVATIdentifier(): Code[20]
+    begin
+        exit(CopyStr(PmtDiscCompVATIdentifierTxt, 1, 20));
+    end;
+
+    local procedure IsPmtDiscCompensationLine(VATAmtLine: Record "VAT Amount Line"): Boolean
+    begin
+        exit(VATAmtLine."VAT Identifier" = GetPmtDiscCompensationVATIdentifier());
+    end;
+
+    local procedure HasPmtDiscCompensationLine(var VATAmtLine: Record "VAT Amount Line"): Boolean
+    var
+        Found: Boolean;
+    begin
+        VATAmtLine.Reset();
+        VATAmtLine.SetRange("VAT Identifier", GetPmtDiscCompensationVATIdentifier());
+        Found := not VATAmtLine.IsEmpty();
+        VATAmtLine.Reset();
+        exit(Found);
+    end;
+
+    local procedure CalcLegalMonetaryInfoWithCompensation(SalesHeader: Record "Sales Header"; var TempSalesLine: Record "Sales Line" temporary; var VATAmtLine: Record "VAT Amount Line"; var LineExtensionAmount: Text; var LegalMonetaryTotalCurrencyID: Text; var TaxExclusiveAmount: Text; var TaxExclusiveAmountCurrencyID: Text; var TaxInclusiveAmount: Text; var TaxInclusiveAmountCurrencyID: Text; var AllowanceTotalAmount: Text; var AllowanceTotalAmountCurrencyID: Text; var ChargeTotalAmount: Text; var ChargeTotalAmountCurrencyID: Text; var PrepaidAmount: Text; var PrepaidCurrencyID: Text; var PayableRoundingAmount: Text; var PayableRndingAmountCurrencyID: Text; var PayableAmount: Text; var PayableAmountCurrencyID: Text)
+    var
+        CompensationAmount: Decimal;
+        RealVATBase: Decimal;
+        RealInvDiscount: Decimal;
+        RealPmtDiscount: Decimal;
+        RealAmtInclVAT: Decimal;
+        CurrencyId: Text;
+    begin
+        VATAmtLine.Reset();
+        if VATAmtLine.FindSet() then
+            repeat
+                if IsPmtDiscCompensationLine(VATAmtLine) then
+                    CompensationAmount += VATAmtLine."VAT Base"
+                else begin
+                    RealVATBase += VATAmtLine."VAT Base";
+                    RealInvDiscount += VATAmtLine."Invoice Discount Amount";
+                    RealPmtDiscount += VATAmtLine."Pmt. Discount Amount";
+                    RealAmtInclVAT += VATAmtLine."Amount Including VAT";
+                end;
+            until VATAmtLine.Next() = 0;
+
+        CurrencyId := GetSalesDocCurrencyCode(SalesHeader);
+
+        LineExtensionAmount := Format(Round(RealVATBase, 0.01) + Round(RealInvDiscount, 0.01), 0, 9);
+        LegalMonetaryTotalCurrencyID := CurrencyId;
+        TaxExclusiveAmount := Format(Round(RealVATBase - RealPmtDiscount + CompensationAmount, 0.01), 0, 9);
+        TaxExclusiveAmountCurrencyID := CurrencyId;
+        TaxInclusiveAmount := Format(Round(RealAmtInclVAT - RealPmtDiscount + CompensationAmount, 0.01, '>'), 0, 9);
+        TaxInclusiveAmountCurrencyID := CurrencyId;
+        AllowanceTotalAmount := Format(Round(RealInvDiscount + RealPmtDiscount, 0.01), 0, 9);
+        AllowanceTotalAmountCurrencyID := CurrencyId;
+        ChargeTotalAmount := Format(Round(CompensationAmount, 0.01), 0, 9);
+        ChargeTotalAmountCurrencyID := CurrencyId;
+        PrepaidAmount := '0.00';
+        PrepaidCurrencyID := CurrencyId;
+
+        if TempSalesLine."Line No." = 0 then begin
+            PayableRoundingAmount := Format(RealAmtInclVAT - Round(RealAmtInclVAT, 0.01), 0, 9);
+            PayableRndingAmountCurrencyID := CurrencyId;
+            PayableAmount := Format(Round(RealAmtInclVAT - RealPmtDiscount + CompensationAmount, 0.01), 0, 9);
+            PayableAmountCurrencyID := CurrencyId;
+        end else begin
+            PayableRoundingAmount := Format(TempSalesLine."Amount Including VAT", 0, 9);
+            PayableRndingAmountCurrencyID := CurrencyId;
+            PayableAmount := Format(Round(RealAmtInclVAT + TempSalesLine."Amount Including VAT" - RealPmtDiscount + CompensationAmount, 0.01), 0, 9);
+            PayableAmountCurrencyID := CurrencyId;
+        end;
+    end;
+
     /// <summary>
     /// Retrieves and accumulates tax categories from sales lines into a buffer.
     /// </summary>
@@ -1735,6 +1860,24 @@ codeunit 1605 "PEPPOL Management"
             TaxExemptionReasonTxt := VATProductPostingGroupCategory.Description;
     end;
 
+    /// <summary>
+    /// Retrieves the tax exemption reason for a specific VAT breakdown. Unlike the overload without the VAT amount line,
+    /// this tells apart breakdowns that share the same tax category, such as the payment discount compensation.
+    /// </summary>
+    /// <param name="VATAmtLine">Specifies the VAT amount line the tax subtotal is written from.</param>
+    /// <param name="VATProductPostingGroupCategory">Specifies the VAT product posting group category buffer.</param>
+    /// <param name="TaxExemptionReasonTxt">Returns the tax exemption reason description.</param>
+    /// <param name="TaxCategoryID">Specifies the tax category identifier to look up.</param>
+    procedure GetTaxExemptionReason(VATAmtLine: Record "VAT Amount Line"; var VATProductPostingGroupCategory: Record "VAT Product Posting Group"; var TaxExemptionReasonTxt: Text; TaxCategoryID: Text)
+    begin
+        if IsPmtDiscCompensationLine(VATAmtLine) then begin
+            TaxExemptionReasonTxt := PmtDiscCompExemptionReasonTxt;
+            exit;
+        end;
+
+        GetTaxExemptionReason(VATProductPostingGroupCategory, TaxExemptionReasonTxt, TaxCategoryID);
+    end;
+
     /// <summary>
     /// Returns the PEPPOL telemetry token for feature usage tracking.
     /// </summary>
diff --git a/src/Layers/BE/BaseApp/Sales/Peppol/SalesCrMemoPEPPOLBIS30.XmlPort.al b/src/Layers/BE/BaseApp/Sales/Peppol/SalesCrMemoPEPPOLBIS30.XmlPort.al
index 9becaa029d8..950c86f09e2 100644
--- a/src/Layers/BE/BaseApp/Sales/Peppol/SalesCrMemoPEPPOLBIS30.XmlPort.al
+++ b/src/Layers/BE/BaseApp/Sales/Peppol/SalesCrMemoPEPPOLBIS30.XmlPort.al
@@ -1478,7 +1478,7 @@ xmlport 1611 "Sales Cr.Memo - PEPPOL BIS 3.0"
                           TaxCategoryPercent,
                           TaxTotalTaxSchemeID);
 
-                        PEPPOLMgt.GetTaxExemptionReason(TempVATProductPostingGroup, TaxExemptionReason, TaxTotalTaxCategoryID);
+                        PEPPOLMgt.GetTaxExemptionReason(TempVATAmtLine, TempVATProductPostingGroup, TaxExemptionReason, TaxTotalTaxCategoryID);
                     end;
                 }
 
diff --git a/src/Layers/BE/BaseApp/Sales/Peppol/SalesInvoicePEPPOLBIS30.XmlPort.al b/src/Layers/BE/BaseApp/Sales/Peppol/SalesInvoicePEPPOLBIS30.XmlPort.al
index cac089e0e46..0e056a95193 100644
--- a/src/Layers/BE/BaseApp/Sales/Peppol/SalesInvoicePEPPOLBIS30.XmlPort.al
+++ b/src/Layers/BE/BaseApp/Sales/Peppol/SalesInvoicePEPPOLBIS30.XmlPort.al
@@ -1267,6 +1267,12 @@ xmlport 1610 "Sales Invoice - PEPPOL BIS 3.0"
                 {
                     XmlName = 'AllowanceChargeReasonCode';
                     NamespacePrefix = 'cbc';
+
+                    trigger OnBeforePassVariable()
+                    begin
+                        if AllowanceChargeReasonCodePaymentDiscount = '' then
+                            currXMLport.Skip();
+                    end;
                 }
                 textelement(AllowanceChargeReasonPaymentDiscount)
                 {
@@ -1428,7 +1434,7 @@ xmlport 1610 "Sales Invoice - PEPPOL BIS 3.0"
                           TaxCategoryPercent,
                           TaxTotalTaxSchemeID);
 
-                        PEPPOLMgt.GetTaxExemptionReason(TempVATProductPostingGroup, TaxExemptionReason, TaxTotalTaxCategoryID);
+                        PEPPOLMgt.GetTaxExemptionReason(TempVATAmtLine, TempVATProductPostingGroup, TaxExemptionReason, TaxTotalTaxCategoryID);
                     end;
                 }
 
@@ -2185,6 +2191,8 @@ xmlport 1610 "Sales Invoice - PEPPOL BIS 3.0"
             else
                 OnGetTotals(SourceRecRef, SalesLine, TempVATAmtLine, TempVATProductPostingGroup, ProcessedDocType);
         end;
+
+        PEPPOLMgt.AddPaymentDiscountCompensation(TempVATAmtLine);
     end;
 
     local procedure FindNextInvoiceRec(Position: Integer) Found: Boolean