Reference

BR-IC-10 Intra-community breakdown needs an exemption reason

A VAT breakdown (BG-23) with the VAT category code (BT-118) "Intra-community supply" shall have a VAT exemption reason code (BT-121) meaning "Intra-community supply" (VATEX-EU-IC) or the VAT exemption reason text (BT-120) "Intra-community supply" (or its equivalent standard text in another language).

Problem Description

ERROR

XRechnung 3.0

Context and Significance

The exemption reason documents the legal basis for charging no VAT, which the buyer’s tax authority requires to accept the intra-community exemption.

Solution

Add cbc:TaxExemptionReasonCode = VATEX-EU-IC (or a matching cbc:TaxExemptionReason text) to the K TaxCategory.

Quick actions

Validate XML Convert invoice

Valid Examples

Use these points as the practical checks for this section.

K breakdown with BT-121 = VATEX-EU-IC
K breakdown with BT-120 = "Intra-community supply"

Invalid Examples

Use these points as the practical checks for this section.

K breakdown with neither BT-121 nor BT-120 present

Code Examples

Valid XML

<cac:TaxCategory>
  <cbc:ID>K</cbc:ID>
  <cbc:Percent>0</cbc:Percent>
  <cbc:TaxExemptionReasonCode>VATEX-EU-IC</cbc:TaxExemptionReasonCode>
  <cbc:TaxExemptionReason>Intra-community supply</cbc:TaxExemptionReason>
  <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:TaxCategory>

Invalid XML

<cac:TaxCategory>
  <cbc:ID>K</cbc:ID>
  <cbc:Percent>0</cbc:Percent>
  <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:TaxCategory>

Affected Fields

BT-118 VAT category code

BT-121 VAT exemption reason code

BT-120 VAT exemption reason text

Validation Tools

Official KoSIT Validator

Validate your XRechnung files against all BR-DE rules.

Convert PDF to XRechnung

Automatic validation error fixes when converting.