InvoiceGlass

Reason why no VAT is charged is missing (intra-EU supply) · BR-IC-10

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

If the VAT breakdown (BG-23) contains the category intra-community supply (category K), it must state why no VAT is charged – either with the exemption reason code (BT-121) VATEX-EU-IC or with a text (BT-120) such as "Intra-community supply". Category K is for intra-community supplies: goods delivered VAT-free to a business in another EU country (section 4 no. 1b and section 6a UStG); services to businesses in other EU countries usually fall under reverse charge (category AE) instead. 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-IC or the text "Intra-community supply" for the intra-EU supply category.

Rule text and source

Paraphrase · The breakdown for K must explain the intra-EU supply 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 intra-EU supply, but the VAT breakdown lacks the related note explaining why no VAT is charged (rule BR-IC-10). Could you please add the exemption reason code VATEX-EU-IC or the text "Intra-community supply" and send us a corrected invoice?

Kind regards

Example

The breakdown gives category K without a reason text or code. With that treatment confirmed, the correction gives “Intra-EU supply” 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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