# 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).

## Problem Description

> **ERROR**: EN 16931 VAT category rule

## Context and Significance

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.

- [Validate XML](/en/xrechnung-validator?source=resource&rule=BR-AE-05)
- [Convert invoice](/en/pdf-to-xrechnung?source=resource&rule=BR-AE-05)

## 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>
```

## Affected Fields

- [BT-151 Invoiced item VAT category code](/resources/xrechnung/bt-151-invoice-line-vat-category-code)
- [BT-152 Invoiced item VAT rate](/resources/xrechnung/bt-152-invoice-line-vat-category-rate)

## Related Rules

- [BR-AE-06](/resources/kosit-validator-errors/br-ae-06-reverse-charge-allowance-rate-zero)
- [BR-AE-07](/resources/kosit-validator-errors/br-ae-07-reverse-charge-charge-rate-zero)
- [BR-AE-01](/resources/kosit-validator-errors/br-ae-01-reverse-charge-vat-breakdown-required)

## Validation Tools

- [Official KoSIT Validator](https://github.com/itplr-kosit/validator): Run the official KoSIT validator with the XRechnung configuration to check EN 16931 and XRechnung rules.
- [Convert PDF to XRechnung](/pdf-to-xrechnung): Find validation errors during conversion and review each correction.

## Related Resources

- [Official Specification](https://docs.peppol.eu/poacc/billing/3.0/rules/ubl-tc434/)
- [Test Suite](https://github.com/itplr-kosit/xrechnung-testsuite)
- [All validation errors](/resources/kosit-validator-errors): Overview of the EN 16931, XRechnung and Peppol validation rules explained here.