BR-AE-10 Reverse charge reason missing

Reverse-charge invoices must say so in the exemption reason, for example 'Reverse charge'.

What the rule says

A VAT Breakdown (BG-23) with VAT Category code (BT-118) "Reverse charge" shall have a VAT exemption reason code (BT-121), meaning "Reverse charge" or the VAT exemption reason text (BT-120) "Reverse charge" (or the equivalent standard text in another language).

The rule's official wording (CEN / KoSIT). The German XRechnung rules are published in German.

Why it happens

The invoice uses reverse charge (category AE) but the VAT breakdown has no exemption reason or code saying so.

How to fix it

Add the reason, such as "Reverse charge" or "Steuerschuldnerschaft des Leistungsempfängers", or the code VATEX-EU-AE.

Applies to

Every EN 16931 e-invoice: XRechnung, ZUGFeRD / Factur-X, Peppol and others.

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More about BR-AE-10

With reverse charge (category AE), the buyer pays the VAT to their own tax office instead of the seller charging it. The invoice must say so clearly. In Germany, § 14a (5) UStG requires the words "Steuerschuldnerschaft des Leistungsempfängers"; other EU countries use the English "Reverse charge" or their own translation. In the e-invoice, this note goes into the VAT breakdown, as text, as the code VATEX-EU-AE, or both.

Reverse charge has other requirements that are checked by neighbouring rules: the buyer's VAT ID must be on the invoice, the seller needs a VAT ID too, and the VAT amount in the AE category must be 0. Typical cases are services to a business in another EU country, and certain domestic cases in Germany such as construction services between builders (§ 13b UStG).

The fields involved

BT-120 VAT exemption reason text: CII ram:ApplicableTradeTax/ram:ExemptionReason; UBL cac:TaxSubtotal/cac:TaxCategory/cbc:TaxExemptionReason
BT-121 VAT exemption reason code: CII ram:ApplicableTradeTax/ram:ExemptionReasonCode; UBL cac:TaxSubtotal/cac:TaxCategory/cbc:TaxExemptionReasonCode
BT-118 VAT category code: CII ram:ApplicableTradeTax/ram:CategoryCode; UBL cac:TaxSubtotal/cac:TaxCategory/cbc:ID

Typical situations

The reverse charge note is printed on the PDF but missing from the XML breakdown.
The VAT category was switched to AE, but the old reason field stayed empty.
A template for EU customers sets 0 % VAT without any reason.

Example

A reverse charge breakdown entry (CII):

<ram:ApplicableTradeTax>
  <ram:CalculatedAmount>0.00</ram:CalculatedAmount>
  <ram:TypeCode>VAT</ram:TypeCode>
  <ram:ExemptionReason>Steuerschuldnerschaft des Leistungsempfängers / Reverse charge</ram:ExemptionReason>
  <ram:BasisAmount>1200.00</ram:BasisAmount>
  <ram:CategoryCode>AE</ram:CategoryCode>
  <ram:ExemptionReasonCode>VATEX-EU-AE</ram:ExemptionReasonCode>
  <ram:RateApplicablePercent>0</ram:RateApplicablePercent>
</ram:ApplicableTradeTax>