BR-AE-10: Reverse charge without an exemption reason. How to fix it

What the rule checks

The rule checks every group in the VAT breakdown (BG-23) with category AE (reverse charge): it must carry an exemption reason. That can be a code (BT-121) meaning reverse charge, or a text (BT-120) saying reverse charge, or the equivalent wording in another language. Either one is enough.

Why files fail it

• The reason sits on the line only, not in the VAT group of the breakdown. For this rule only the breakdown counts.
• The reverse charge statement appears only as an invoice note or in the PDF layout, not in the field meant for it.
• Under reverse charge the software sets only category AE and a zero rate, and leaves the exemption reason empty.

How to fix it

1. 1Enter an exemption reason in every VAT group with category AE: either the code VATEX-EU-AE from the VATEX code list (BT-121), or a text (BT-120) such as "Reverse charge", in German "Steuerschuldnerschaft des Leistungsempfängers".
2. 2The reason belongs in the VAT breakdown (BG-23), not only on the line and not only in a note.
3. 3Whether reverse charge applies to your sale at all is a tax question. Clarify it with your tax adviser; this rule only checks that the reason is stated.
4. 4In our form you choose "Reverse charge (customer pays the VAT)" under "VAT type". Our software then writes the exemption reason into the VAT group as text by itself; there is no separate box for it.