Rules / BR-AE-10 · Markdown

BR-AE-10

EN 16931-1 layer: en16931

Checked against Peppol BIS Billing 3.0 2026.5

What does BR-AE-10 mean? 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).

Why did my invoice fail BR-AE-10?

A VAT breakdown (BG-23) with category code (BT-118) "AE" (reverse charge) must justify the zero VAT by providing either a VAT exemption reason code (BT-121) meaning reverse charge or an exemption reason text (BT-120) stating "Reverse charge" (or its equivalent in another language). This gives the buyer and auditors the legal basis for the missing VAT.

Official rule text

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).

Common causes

• AE subtotal has neither an exemption reason code nor reason text populated.
• A generic or wrong exemption code was used instead of one denoting reverse charge (e.g. VATEX-EU-AE).
• Reason text present but does not convey "reverse charge" semantics.
• Placing the exemption reason on the wrong TaxCategory or at line level rather than the breakdown.

How do I fix it?

Add a reverse-charge exemption reason to the AE TaxCategory: <cac:TaxCategory><cbc:ID>AE</cbc:ID><cbc:Percent>0</cbc:Percent><cbc:TaxExemptionReasonCode>VATEX-EU-AE</cbc:TaxExemptionReasonCode><cbc:TaxExemptionReason>Reverse charge</cbc:TaxExemptionReason>...</cac:TaxCategory>

Related rules

BR-AE-01 · BR-AE-02 · BR-AE-03 · BR-AE-04 · BR-AE-05 · BR-AE-06 · BR-AE-07 · BR-AE-08