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Reference

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BT-120 VAT Exemption Reason Text

A textual reason for VAT categories E, AE, K, G, or O. Do not use it for S, Z, L, or M.

BT-120 gives the plain-language reason for VAT categories E, AE, K, G, or O. Provide BT-120 or the coded alternative BT-121. Do not use either field for S, Z, L, or M. Example: Reverse charge - VAT owed by the recipient.

BT-120 · EN 16931 / XRechnung 3.x

BT Reference Card

Key EN 16931 and XRechnung facts for this business term.

BT code
BT-120
Name
VAT Exemption Reason Text
Cardinality
Conditional (C)
Business group
BG-23 VAT BREAKDOWN
Data type
Text
Example value
Reverse charge - VAT owed by the recipient
Common error
Provide BT-120 or BT-121 for categories E, AE, K, G, and O. Do not provide either field for S, Z, L, or M; BR-S-10, BR-Z-10, BR-AF-10, and BR-AG-10 forbid them.

Taxes and totals

VAT treatment, tax breakdowns, and document totals that validators check closely.

Quick actions

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In plain language

A textual reason for VAT categories E, AE, K, G, or O. Do not use it for S, Z, L, or M.

Explains the VAT treatment to the buyer, accounting systems, and tax auditors when no VAT is charged.

What you usually enter here

Free text reason aligned with the VAT category treatment

Typical valid values include: Reverse charge, Intra-community supply, VAT exempt service

Provide BT-120 or BT-121 for E, AE, K, G, and O. Do not provide either field for S, Z, L, or M.

Where the field sits

Totals and tax
UBL 2.1 Syntax
  1. Invoice
  2. cac:TaxTotal
  3. cac:TaxSubtotal
  4. cac:TaxCategory
  5. cbc:TaxExemptionReasonBT-120
CII (UN/CEFACT) Syntax
  1. rsm:CrossIndustryInvoice
  2. rsm:SupplyChainTradeTransaction
  3. ram:ApplicableHeaderTradeSettlement
  4. ram:ApplicableTradeTax
  5. ram:ExemptionReasonBT-120
BT-120 belongs to the Totals and tax part of the invoice. UBL 2.1 Syntax: Invoice › cac:TaxTotal › cac:TaxSubtotal › cac:TaxCategory › cbc:TaxExemptionReason. CII (UN/CEFACT) Syntax: rsm:CrossIndustryInvoice › rsm:SupplyChainTradeTransaction › ram:ApplicableHeaderTradeSettlement › ram:ApplicableTradeTax › ram:ExemptionReason.

What goes wrong often

Avoid values like: Tax free

Relevant rule codes: BR-AE-10, BR-E-10, BR-G-10, BR-IC-10, BR-O-10, BR-S-10, BR-Z-10, BR-AF-10, BR-AG-10

Valid Examples

  • Reverse charge
  • Intra-community supply
  • VAT exempt service

Invalid Examples

  • Tax free

XML mapping and field facts

Open the technical reference if you need XML paths, validator rule codes, legal wording, or schema-specific mapping details.

Field ID:

BT-120

Data Type:

text

Cardinality:

0..1

Requirement:

Optional

XML Implementation

UBL 2.1 Syntax
/Invoice/cac:TaxTotal/cac:TaxSubtotal/cac:TaxCategory/cbc:TaxExemptionReason
CII (UN/CEFACT) Syntax
/rsm:CrossIndustryInvoice/rsm:SupplyChainTradeTransaction/ram:ApplicableHeaderTradeSettlement/ram:ApplicableTradeTax/ram:ExemptionReason

Validation Rules

BR-AE-10

BR-AE-10

BR-E-10

BR-E-10

BR-G-10

BR-G-10

BR-IC-10

BR-IC-10

BR-O-10

BR-O-10

BR-S-10

BR-S-10

BR-Z-10

BR-Z-10

BR-AF-10

BR-AF-10

BR-AG-10

BR-AG-10

Next step

Check whether your XRechnung sets BT-120 correctly

Upload the XML file to the free validator. It applies the KoSIT rules for XRechnung 3.0 and names each finding with its rule ID, for this field for example BR-AE-10, BR-E-10. Creating a new invoice instead? The converter checks the invoice against the same rules and shows the findings before download.

Validate XMLConvert invoice

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Official sources and tools

KoSIT Validator
XRechnung Standard
Test Suite