BR-AE-10 Reverse-charge VAT entry has no exemption reason

What it means

The VAT breakdown has an entry with category AE (reverse charge, BT-118). That entry must say why no VAT is charged: with the exemption reason code for reverse charge (BT-121, code VATEX-EU-AE) or a reason text such as 'Reverse charge' (BT-120). Neither is present.

Common causes

• The invoicing software prints the reverse-charge note only in a free-text note, not in the VAT breakdown.
• The VAT code for reverse charge in the software has no exemption reason set up.
• An exemption reason code is given for another category, not for reverse charge.

How to fix it

Add the exemption reason code VATEX-EU-AE (or the reason text) to the reverse-charge entry of the VAT breakdown, usually by setting it on the VAT code in the software.

Who fixes it: The sender's invoicing software or its VAT code setup.

Invoice fields involved

BG-23 BT-118 BT-120 BT-121

Related rules

• BR-AE-02 Reverse charge is used, but a VAT number is missing
• BR-E-10 VAT-exempt entry has no exemption reason

This is our own plain-language explanation, not the official rule text. The official definition is in the first source below.