Reference

BR-AE-09 Reverse charge VAT category tax amount must be zero

The VAT category tax amount (BT-117) in a VAT breakdown (BG-23) where the VAT category code (BT-118) is "Reverse charge" (AE) shall be 0 (zero).

Reverse charge leaves the seller with no output VAT to remit, so the AE category VAT amount must be exactly zero and must not feed the invoice VAT total. In practice, the error occurs when software calculates the standard rate on the AE base and writes that amount into the breakdown.

Solution

Set the AE cac:TaxSubtotal/cbc:TaxAmount (BT-117) to 0.00; the seller reports no VAT because the buyer accounts for it under the reverse charge mechanism.

Quick actions

Validate XML Convert invoice

Valid Examples

AE breakdown with BT-118 = AE and BT-117 = 0.00

Invalid Examples

AE breakdown with BT-118 = AE but BT-117 = 190.00

Code Examples

Valid XML

<cac:TaxSubtotal>
  <cbc:TaxableAmount currencyID="EUR">1000.00</cbc:TaxableAmount>
  <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
  <cac:TaxCategory>
    <cbc:ID>AE</cbc:ID>
    <cbc:Percent>0</cbc:Percent>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:TaxCategory>
</cac:TaxSubtotal>

Invalid XML

<cac:TaxSubtotal>
  <cbc:TaxableAmount currencyID="EUR">1000.00</cbc:TaxableAmount>
  <cbc:TaxAmount currencyID="EUR">190.00</cbc:TaxAmount>
  <cac:TaxCategory>
    <cbc:ID>AE</cbc:ID>
    <cbc:Percent>0</cbc:Percent>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:TaxCategory>
</cac:TaxSubtotal>