Reference

BR-AE-05 Reverse charge invoice line VAT rate must be zero

In an invoice line (BG-25) where the invoiced item VAT category code (BT-151) is "Reverse charge" (AE), the invoiced item VAT rate (BT-152) shall be 0 (zero).

Because reverse charge shifts VAT accounting to the buyer, the seller must invoice the line at a zero rate to avoid charging tax it will not remit. In practice, the error occurs when software keeps the usual rate of the item (for example 19 %) after the line is switched to reverse charge.

Solution

Set cac:Item/cac:ClassifiedTaxCategory/cbc:Percent (BT-152) to 0 on every reverse charge line; the buyer, not the seller, applies the effective VAT rate.

Quick actions

Validate XML Convert invoice

Valid Examples

Reverse charge line: BT-151 = AE and BT-152 = 0

Invalid Examples

Reverse charge line with BT-151 = AE but BT-152 = 19

Code Examples

Valid XML

<cac:InvoiceLine>
  <cbc:ID>1</cbc:ID>
  <cac:Item>
    <cac:ClassifiedTaxCategory>
      <cbc:ID>AE</cbc:ID>
      <cbc:Percent>0</cbc:Percent>
      <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
    </cac:ClassifiedTaxCategory>
  </cac:Item>
</cac:InvoiceLine>

Invalid XML

<cac:InvoiceLine>
  <cbc:ID>1</cbc:ID>
  <cac:Item>
    <cac:ClassifiedTaxCategory>
      <cbc:ID>AE</cbc:ID>
      <cbc:Percent>19</cbc:Percent>
      <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
    </cac:ClassifiedTaxCategory>
  </cac:Item>
</cac:InvoiceLine>