errorEN16931

BR-AE-05:Reverse charge invoice line must have 0% VAT rate

When an invoice line uses the reverse charge VAT category, the VAT rate must be 0%. Reverse charge means the buyer accounts for VAT, so seller charges zero VAT.

We can fix this automatically

AUTO-FIX

Auto-fix: Set VAT rate to 0 for reverse charge line items. This is safe because reverse charge always means 0% seller VAT by definition.

No manual changes needed
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Why This Error Matters

Invoice will be rejected by validation. Reverse charge mechanism requires 0% VAT rate - any other rate is logically incorrect.

How to Fix It

1

Identify reverse charge lines

2

Check VAT rate values

3

Set rate to zero

4

Verify consistency

5

Validate the result

Technical Details

XPath: /Invoice/cac:InvoiceLine/cac:Item/cac:ClassifiedTaxCategory/cbc:Percent (BT-152). When BT-151 (cbc:ID in ClassifiedTaxCategory) is "AE" for reverse charge, BT-152 must be 0. This rule enforces the logical requirement that sellers do not charge VAT on reverse charge supplies.

Common Causes

  • Non-zero VAT rate applied to reverse charge line
  • Standard VAT rate left on line when changing to reverse charge
  • ERP did not automatically set rate to zero
  • Manual error when setting up reverse charge item
  • VAT rate field not cleared when category changed

Frequently Asked Questions

When an invoice line uses the reverse charge VAT category, the VAT rate must be 0%. Reverse charge means the buyer accounts for VAT, so seller charges zero VAT.
Set the VAT rate to 0% for invoice lines using reverse charge (category AE). Reverse charge always means 0% seller VAT. You can also use Invoice Navigator's automatic Fixer tool to correct this instantly.
Yes, BR-AE-05 is a critical error that will cause invoice rejection. It must be fixed before submission to ensure your invoice is accepted.
Many instances of BR-AE-05 can be automatically corrected using Invoice Navigator's Fixer tool. Upload your invoice and the tool will identify and fix common issues.

See Also

Last updated: 16 January 2026

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