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BR-AE-07:Document level charge with reverse charge must have 0% VAT rate
When a document level charge uses the reverse charge VAT category, the VAT rate must be 0%. Charges in reverse charge scenarios follow the same zero-rate rule.
We can fix this automatically
AUTO-FIXAuto-fix: Set VAT rate to 0 for reverse charge charges. Safe because reverse charge always requires 0% rate.
No manual changes needed
Upload and Fix NowWhy This Error Matters
Invoice will be rejected by validation. Reverse charge charges must have 0% VAT rate for logical consistency.
How to Fix It
1
Identify reverse charge charges
2
Check VAT rate values
3
Set rate to zero
4
Validate the result
Technical Details
XPath: /Invoice/cac:AllowanceCharge[cbc:ChargeIndicator=true]/cac:TaxCategory/cbc:Percent (BT-103). When BT-102 (cbc:ID in TaxCategory) is "AE" for reverse charge, BT-103 must be 0. This applies to document level charges (BG-21) where ChargeIndicator is true.Common Causes
- Non-zero VAT rate on reverse charge charge
- VAT rate not adjusted when charge category set to reverse charge
- Copy from standard charge without updating rate
- ERP does not auto-correct rate for reverse charge charges
- Manual configuration error
Frequently Asked Questions
VAT category AE must have exemption reason.
Add TaxExemptionReasonCode VATEX-EU-AE or text. You can also use Invoice Navigator's automatic Fixer tool to correct this instantly.
Yes, BR-AE-07 is a critical error that will cause invoice rejection. It must be fixed before submission to ensure your invoice is accepted by the recipient's system.
Many instances of BR-AE-07 can be automatically corrected using Invoice Navigator's Fixer tool. Upload your invoice and the tool will identify and fix common issues, including reverse charge requires reason.
See Also
Related Errors
Last updated: 16 January 2026
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