What is BR-AE about?
The "Reverse charge" category (VAT category code "AE") marks supplies where the buyer, not the seller, owes the VAT. In German B2B it applies above all to construction work under section 13b UStG and to services from abroad. The common thread of the BR-AE rules: VAT rate and tax amount are always 0, the invoice needs the VAT identifier (or an equivalent identifier) of both seller and buyer, and the VAT breakdown must hold exactly one reverse charge entry with a VAT exemption reason. That keeps it clear that the tax liability passes to the buyer. The rules check these conditions for invoice lines, allowances and charges alike.
All rules in group BR-AE
If an invoice contains an invoice line (BG-25), a document level allowance (BG-20) or a document level charge (BG-21) with the VAT category code reverse charge (BT-151, BT-95 or BT-102), then the VAT breakdown (BG-23) must contain exactly one entry with the VAT category code (BT-118) reverse charge.
If an invoice has a line whose invoiced item VAT category code (BT-151) is reverse charge, then it must contain the Seller VAT identifier (BT-31), the Seller tax registration identifier (BT-32) and/or the Seller tax representative VAT identifier (BT-63), as well as the Buyer VAT identifier (BT-48) and/or the Buyer legal registration identifier (BT-47).
If an invoice has a document level allowance whose VAT category code (BT-95) is reverse charge, then it must contain the Seller VAT identifier (BT-31), the Seller tax registration identifier (BT-32) and/or the Seller tax representative VAT identifier (BT-63), as well as the Buyer VAT identifier (BT-48) and/or the Buyer legal registration identifier (BT-47).
If an invoice has a document level charge whose VAT category code (BT-102) is reverse charge, then it must contain the Seller VAT identifier (BT-31), the Seller tax registration identifier (BT-32) and/or the Seller tax representative VAT identifier (BT-63), as well as the Buyer VAT identifier (BT-48) and/or the Buyer legal registration identifier (BT-47).
In an invoice line whose invoiced item VAT category code (BT-151) is reverse charge, the invoiced item VAT rate (BT-152) must be 0 (zero).
In a document level allowance whose VAT category code (BT-95) is reverse charge, the document level allowance VAT rate (BT-96) must be 0 (zero).
In a document level charge whose VAT category code (BT-102) is reverse charge, the document level charge VAT rate (BT-103) must be 0 (zero).
In a VAT breakdown with the VAT category code (BT-118) reverse charge, the VAT category taxable amount (BT-116) must equal the sum of the invoice line net amounts minus the document level allowances plus the document level charges, in each case for the reverse charge entries.
In a VAT breakdown with the VAT category code (BT-118) reverse charge, the VAT category tax amount (BT-117) must be 0 (zero).
A VAT breakdown with the VAT category code (BT-118) reverse charge must contain a VAT exemption reason code (BT-121) meaning reverse charge or the VAT exemption reason text (BT-120) reverse charge.
Check BR-AE automatically
Instead of digging through the XML by hand you can validate your ZUGFeRD or XRechnung file online – you get every violation with rule ID, affected field, fix and XPath, as a readable report or as JSON through the API.