InvoiceGlass

Reason why no VAT is charged is missing (reverse charge) · BR-AE-10

  • Severity · Error
  • Applies to · UBL / CII
  • Editorial review pending

If the VAT breakdown (BG-23) contains the category reverse charge (category AE), it must state why no VAT is charged – either with the exemption reason code (BT-121) VATEX-EU-AE or with a text (BT-120) such as "Reverse charge". Category AE means reverse charge: the customer, not the supplier, accounts for the VAT – typical for services bought from businesses in other EU countries or for construction work between contractors in Germany (section 13b UStG). If this is missing, the invoice is not valid.

As of

Who can correct it?

The sender can correct the invoice.

How to fix it

  1. Ask the sender for a corrected invoice with the appropriate note in the VAT breakdown.
  2. If you issued the invoice yourself: enter the exemption reason code VATEX-EU-AE or the text "Reverse charge" for the reverse charge category.

Rule text and source

Paraphrase · The breakdown for AE must explain the reverse charge treatment. The check accepts a reason in text or the corresponding code.

Message to the sender

Subject: Invoice {invoiceNumber} – VAT note missing

Hello,

Thank you for your invoice {invoiceNumber} dated {issueDate}. The invoice uses the VAT category reverse charge, but the VAT breakdown lacks the related note explaining why no VAT is charged (rule BR-AE-10). Could you please add the exemption reason code VATEX-EU-AE or the text "Reverse charge" and send us a corrected invoice?

Kind regards

Example

The breakdown gives category AE without a reason text or code. With that treatment confirmed, the correction gives “Reverse charge” in the reason text field.

Related rules

Business terms

BG-23

Rule versions

CEN · EN 16931 (KoSIT) 1.3.16

CEN · EN 16931 1.3.17

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