Reference
Markdown exportBT-120 VAT Exemption Reason Text
A textual explanation of why a VAT breakdown is exempt, zero-rated, outside scope, intra-community, or reverse charge.
BT-120 (VAT exemption reason text) gives the plain-language reason a VAT breakdown carries no or reduced tax. Conditional under EN 16931: required (as text or coded reason) when the category is exempt, reverse charge, intra-community, export or out of scope; standard and zero-rated breakdowns must not carry one. Example: Reverse charge - VAT owed by the recipient.
BT-120 · EN 16931 / XRechnung 3.x
BT Reference Card
Canonical EN 16931 / XRechnung facts for this business term — citable from this anchor.
- 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
- BR-E-10 / BR-AE-10 / BR-IC-10 / BR-G-10 / BR-O-10: when the VAT category is exempt, reverse charge, intra-community, export or out of scope, an exemption reason text (BT-120) or coded reason (BT-121) must be given; omitting both fails. Standard (S) and zero-rated (Z) breakdowns must NOT carry a reason (BR-S-10 / BR-Z-10).
Quick answer
A textual explanation of why a VAT breakdown is exempt, zero-rated, outside scope, intra-community, or reverse charge.
Taxes and totals
VAT treatment, tax breakdowns, and document totals that validators check closely.
Quick actions
In plain language
A textual explanation of why a VAT breakdown is exempt, zero-rated, outside scope, intra-community, or reverse charge.
A textual explanation of why a VAT breakdown is exempt, zero-rated, outside scope, intra-community, or reverse charge.
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
Required by EN 16931 category rules when the selected VAT category needs an exemption or reverse-charge reason.
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
Examples in context
Explains the VAT treatment to the buyer, accounting systems, and tax auditors when no VAT is charged.
Required by EN 16931 category rules when the selected VAT category needs an exemption or reverse-charge reason.
Valid Examples
Use these points as the practical checks for this section.
- Reverse charge
- Intra-community supply
- VAT exempt service
Invalid Examples
Use these points as the practical checks for this section.
- 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 when the VAT category requires an exemption or reverse-charge reason
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
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
Required by EN 16931 category rules when the selected VAT category needs an exemption or reverse-charge reason.