InvoiceGlass

Reason for the VAT exemption is missing (exempt) · BR-E-10

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

If the VAT breakdown (BG-23) contains the category exempt from VAT (category E), it must state why no VAT is charged – either as an exemption reason code (BT-121) or as text (BT-120), for example "Exempt under section 4 no. 14 UStG" or "No VAT charged – small business under section 19 UStG". Category E covers VAT-exempt supplies such as many medical treatments, insurance brokering or residential letting (section 4 UStG); small businesses under the German Kleinunternehmer rule (section 19 UStG) usually invoice with this category as well. If the reason 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 that states the exemption reason.
  2. If you issued the invoice yourself: enter the reason for the exemption as text, such as the applicable section of the UStG or a reference to the small-business rule.

Rule text and source

Paraphrase · The breakdown for E must explain the VAT exemption treatment. The check accepts a reason in text or the corresponding code.

Message to the sender

Subject: Invoice {invoiceNumber} – VAT exemption reason missing

Hello,

Thank you for your invoice {invoiceNumber} dated {issueDate}. The invoice uses the VAT category "exempt from VAT" but does not say why no VAT is charged (rule BR-E-10). Could you please add the exemption reason, for example the applicable section of the UStG or a reference to the small-business rule, and send us a corrected invoice?

Kind regards

Example

The category E breakdown has neither a reason text nor a reason code. In the corrected invoice, the sender supplies the confirmed basis for the exemption 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

Validate a file