errorEN16931

`BR-AE-10`:Reverse charge VAT breakdown must include exemption reason

A reverse charge VAT breakdown must include either a VAT exemption reason code meaning "Reverse charge" or exemption text stating "Reverse charge" (or equivalent). This explains why no VAT is charged.

We can fix this automatically

AUTO-FIX

Auto-fix: Add VAT exemption reason code for reverse charge (VATEX-EU-AE) or text "Reverse charge" if missing. Safe because the category already indicates reverse charge.

No manual changes needed

Upload and Fix Now

Why This Error Matters

Invoice will be rejected by validation. Reverse charge requires explicit justification via exemption reason for tax compliance.

How to Fix It

Locate reverse charge VAT breakdown

Check for exemption reason

Add exemption reason code

Or add exemption reason text

Validate the result

Technical Details

XPath: /Invoice/cac:TaxTotal/cac:TaxSubtotal/cac:TaxCategory[cbc:ID="AE"]/cbc:TaxExemptionReasonCode (BT-121) or /cbc:TaxExemptionReason (BT-120). For reverse charge (AE), either the code or text must explain the exemption. Common code: VATEX-EU-AE.

Common Causes

Reverse charge breakdown missing exemption reason code
Exemption reason text not provided
ERP does not auto-populate exemption reason for reverse charge
Standard exemption code used instead of reverse charge specific code
Exemption reason field left empty

Frequently Asked Questions

Add VAT exemption reason code VATEX-EU-AE or text "Reverse charge" to the reverse charge VAT breakdown. You can also use Invoice Navigator's automatic Fixer tool to correct this instantly.

Yes, BR-AE-10 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-10 can be automatically corrected using Invoice Navigator's Fixer tool. Upload your invoice and the tool will identify and fix common issues.

BR-AE-10:Reverse charge VAT breakdown must include exemption reason