Reference
Markdown exportBT-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.
Quick answer
A textual reason for VAT categories E, AE, K, G, or O. Do not use it for S, Z, L, or M.
Taxes and totals
VAT treatment, tax breakdowns, and document totals that validators check closely.
Quick actions
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.
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.
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
Examples in context
Explains the VAT treatment to the buyer, accounting systems, and tax auditors when no VAT is charged.
Provide BT-120 or BT-121 for E, AE, K, G, and O. Do not provide either field for S, Z, L, or M.
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
Since Version:
Conditional
XML Implementation
/Invoice/cac:TaxTotal/cac:TaxSubtotal/cac:TaxCategory/cbc:TaxExemptionReason/CrossIndustryInvoice/SupplyChainTradeTransaction/ApplicableHeaderTradeSettlement/ram:ApplicableTradeTax/ram:ExemptionReasonValidation 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.
Free, no account needed. XML file up to 2 MB.
Why the standard cares about this field
Business Context
Explains the VAT treatment to the buyer, accounting systems, and tax auditors when no VAT is charged.
Legal Requirement
Provide BT-120 or BT-121 for E, AE, K, G, and O. Do not provide either field for S, Z, L, or M.