{"slug":"vat-category-codes","listId":"UNCL 5305","listName":"VAT category codes","description":"UNCL 5305 codes that state the VAT treatment of invoice lines (BT-151), document allowances and charges (BT-95, BT-102) and the VAT breakdown (BT-118).","scopeNote":"These are all ten codes that EN 16931 allows (rules BR-CL-17 and BR-CL-18). UNCL 5305 contains further codes that EN 16931 validators reject.","officialSource":{"label":"UN/CEFACT code list UNCL 5305","url":"https://unece.org/trade/uncefact"},"dateModified":"2026-09-14","items":[{"code":"S","label":"Standard rate","notes":"Every positive VAT rate, including reduced rates (for example 19 % and 7 % in Germany). The rate goes in BT-152 and BT-119 and must be greater than 0."},{"code":"Z","label":"Zero rated goods","notes":"Taxable supplies with a legal rate of 0 % (for example certain photovoltaic systems under § 12 (3) UStG in Germany). Rate 0 and no exemption reason (BR-Z-10). Exports and intra-EU supplies use G and K instead."},{"code":"E","label":"Exempt from tax","notes":"Exempt supplies, for example § 4 UStG or small businesses under § 19 UStG in Germany. Rate 0, and the VAT breakdown needs an exemption reason text (BT-120) or code (BT-121) (BR-E-10)."},{"code":"AE","label":"VAT reverse charge","notes":"The buyer accounts for the VAT. The invoice needs a seller VAT identifier, tax registration identifier or tax representative VAT identifier (BT-31, BT-32 or BT-63) and a buyer VAT identifier or legal registration identifier (BT-48 or BT-47) (BR-AE-02). Rate and VAT amount are 0, and the breakdown needs an exemption reason such as VATEX-EU-AE (BR-AE-10)."},{"code":"K","label":"VAT exempt for EEA intra-community supply","notes":"Intra-community supplies of goods between VAT-registered businesses. Seller and buyer VAT identifiers, rate 0, an exemption reason (for example VATEX-EU-IC), the delivery date or invoicing period (BR-IC-11) and the deliver-to country BT-80 (BR-IC-12)."},{"code":"G","label":"Free export item, VAT not charged","notes":"Exports of goods to a destination outside the EU. Rate 0, VAT amount 0 and an exemption reason (for example VATEX-EU-G) in the VAT breakdown (BR-G-10)."},{"code":"O","label":"Services outside scope of tax","notes":"Supplies not subject to VAT. No VAT rate, no seller or buyer VAT identifier (BR-O-02), an exemption reason, and no other VAT category on the same invoice (BR-O-11)."},{"code":"L","label":"Canary Islands general indirect tax (IGIC)","notes":"Used instead of VAT for supplies taxed in the Canary Islands, which are outside the EU VAT area. The IGIC rate goes in the rate fields; BR-AF rules apply."},{"code":"M","label":"Tax for production, services and importation in Ceuta and Melilla (IPSI)","notes":"Used instead of VAT for supplies taxed in Ceuta and Melilla, which are outside the EU VAT area. BR-AG rules apply."},{"code":"B","label":"Transferred VAT – split payment (Italy)","notes":"Italy only: the invoice shows VAT, but the buyer (typically a public body) pays it directly to the tax authority. Allowed only on domestic Italian invoices (BR-B-01) and never together with category S (BR-B-02)."}]}