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E-invoice error explained

BR-AE: Reverse charge (category AE) is incomplete

Category AE means reverse charge: the buyer owes the VAT, for example under § 13b of the German VAT Act.

What the rule checks

Category AE means reverse charge: the buyer owes the VAT, for example under § 13b of the German VAT Act. Rules BR-AE-01 to BR-AE-10 check that the invoice fits: exactly one AE row in the VAT breakdown (01), the seller's VAT ID or tax number and the buyer's VAT ID or legal registration ID (02 to 04), rate 0 (05 to 07), a matching taxable amount (08), tax amount 0 (09) and an exemption reason as text or code (10).

Official rule text

BR-AE-01: An Invoice that contains an Invoice line (BG-25), a Document level allowance (BG-20) or a Document level charge (BG-21) where the VAT category code (BT-151, BT-95 or BT-102) is "Reverse charge" shall contain in the VAT breakdown (BG-23) exactly one VAT category code (BT-118) equal with "VAT reverse charge".
BR-AE-02: An Invoice that contains an Invoice line (BG-25) where the Invoiced item VAT category code (BT-151) is "Reverse charge" shall contain the Seller VAT Identifier (BT-31), the Seller Tax registration identifier (BT-32) and/or the Seller tax representative VAT identifier (BT-63) and the Buyer VAT identifier (BT-48) and/or the Buyer legal registration identifier (BT-47).
BR-AE-03: An Invoice that contains a Document level allowance (BG-20) where the Document level allowance VAT category code (BT-95) is "Reverse charge" shall contain the Seller VAT Identifier (BT-31), the Seller tax registration identifier (BT-32) and/or the Seller tax representative VAT identifier (BT-63) and the Buyer VAT identifier (BT-48) and/or the Buyer legal registration identifier (BT-47).
BR-AE-04: An Invoice that contains a Document level charge (BG-21) where the Document level charge VAT category code (BT-102) is "Reverse charge" shall contain the Seller VAT Identifier (BT-31), the Seller tax registration identifier (BT-32) and/or the Seller tax representative VAT identifier (BT-63) and the Buyer VAT identifier (BT-48) and/or the Buyer legal registration identifier (BT-47).
BR-AE-05: In an Invoice line (BG-25) where the Invoiced item VAT category code (BT-151) is "Reverse charge" the Invoiced item VAT rate (BT-152) shall be 0 (zero).
BR-AE-06: In a Document level allowance (BG-20) where the Document level allowance VAT category code (BT-95) is "Reverse charge" the Document level allowance VAT rate (BT-96) shall be 0 (zero).
BR-AE-07: In a Document level charge (BG-21) where the Document level charge VAT category code (BT-102) is "Reverse charge" the Document level charge VAT rate (BT-103) shall be 0 (zero).
BR-AE-08: In a VAT breakdown (BG-23) where the VAT category code (BT-118) is "Reverse charge" the VAT category taxable amount (BT-116) shall equal the sum of Invoice line net amounts (BT-131) minus the sum of Document level allowance amounts (BT-92) plus the sum of Document level charge amounts (BT-99) where the VAT category codes (BT-151, BT-95, BT-102) are "Reverse charge".
BR-AE-09: The VAT category tax amount (BT-117) in a VAT breakdown (BG-23) where the VAT category code (BT-118) is "Reverse charge" shall be 0 (zero).
BR-AE-10: A VAT Breakdown (BG-23) with VAT Category code (BT-118) "Reverse charge" shall have a VAT exemption reason code (BT-121), meaning "Reverse charge" or the VAT exemption reason text (BT-120) "Reverse charge" (or the equivalent standard text in another language).

Source: KoSIT configuration XRechnung 3.0.2 (31 Jan 2026).

Typical causes

  • The buyer's VAT ID is missing (BR-AE-02 to BR-AE-04).
  • The reverse charge note is missing from the VAT breakdown (BR-AE-10).
  • The lines carry AE but a rate above 0 or a calculated tax amount (BR-AE-05, BR-AE-09).
  • Two AE rows in the breakdown, for example with different exemption texts (BR-AE-01).

How to fix it

Set ram:CategoryCode AE and ram:RateApplicablePercent 0 on every affected line. Create exactly one breakdown row with category AE, rate 0, ram:CalculatedAmount 0.00 and ram:BasisAmount as the sum of the AE lines. Add ram:ExemptionReason there, for example "Reverse charge", and ram:ExemptionReasonCode VATEX-EU-AE. Add the buyer's VAT ID in ram:BuyerTradeParty/ram:SpecifiedTaxRegistration/ram:ID with schemeID="VA". Clarify with your tax adviser whether reverse charge applies in your case.

Example

Wrong (CII)

<ram:ApplicableTradeTax>
  <ram:CalculatedAmount>190.00</ram:CalculatedAmount>
  <ram:TypeCode>VAT</ram:TypeCode>
  <ram:BasisAmount>1000.00</ram:BasisAmount>
  <ram:CategoryCode>AE</ram:CategoryCode>
  <ram:RateApplicablePercent>19</ram:RateApplicablePercent>
</ram:ApplicableTradeTax>

Right (CII)

<ram:ApplicableTradeTax>
  <ram:CalculatedAmount>0.00</ram:CalculatedAmount>
  <ram:TypeCode>VAT</ram:TypeCode>
  <ram:ExemptionReason>Steuerschuldnerschaft des Leistungsempfängers</ram:ExemptionReason>
  <ram:BasisAmount>1000.00</ram:BasisAmount>
  <ram:CategoryCode>AE</ram:CategoryCode>
  <ram:ExemptionReasonCode>VATEX-EU-AE</ram:ExemptionReasonCode>
  <ram:RateApplicablePercent>0</ram:RateApplicablePercent>
</ram:ApplicableTradeTax>

In Dynamics 365, Business Central and Finance

Sales / Project Operations: Sales and Project Operations have no e-invoice output out of the box. In the WBS Invoice Accelerator for Dynamics 365 the VAT rate record (Configuration > VAT Tax Rates) controls the category: VAT category (EN 16931), Percentage, Footer text and VAT exemption reason code. Each line uses its own rate (VAT Tax Rate (Line)), otherwise the invoice's VAT tax rate. For reverse charge create a rate with category AE, Percentage 0, a Footer text such as "Steuerschuldnerschaft des Leistungsempfängers gemäß § 13b UStG." and the code VATEX-EU-AE. The buyer's VAT ID comes from the invoice column Buyer VAT id (wbs_buyervatid), which is on no form in version 1.1.0.2.

Business Central: In the VAT Posting Setup the combination needs VAT Calculation Type Reverse Charge VAT and AE in the Tax Category field. Put the note in a VAT clause (VAT Clause Code). The customer's VAT ID goes in VAT Registration No. on the Foreign Trade FastTab of the customer card.

Finance: Enter AE for the sales tax code under Sales tax codes > External codes. The customer's tax registration number goes in the Tax exempt number field on the Invoice and delivery FastTab of the customer.

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