What is BR-E about?
The BR-E rule group applies to the VAT category "Exempt from VAT" (category code E). It covers genuine exemption under section 4 UStG, for example medical treatment, letting of property or insurance services: the VAT rate is 0 and the tax amount is 0, but unlike zero-rated supplies there is no input VAT deduction. In German B2B the category shows up as soon as a seller invoices a supply exempt under section 4 UStG. The common thread: every line, allowance and charge with code E needs exactly one matching VAT breakdown (BG-23), the seller must be identifiable for tax purposes (VAT identifier, tax registration identifier or tax representative), rate and amount stand at 0, and a VAT exemption reason is mandatory.
All rules in group BR-E
If an invoice contains a line, an allowance or a charge with the VAT category code exempt from VAT, then it must contain exactly one VAT breakdown (BG-23) with the VAT category code (BT-118) exempt from VAT.
If an invoice contains a line whose invoiced item VAT category code (BT-151) is exempt from VAT, then the Seller VAT identifier (BT-31), the Seller tax registration identifier (BT-32) and/or the Seller tax representative VAT identifier (BT-63) must be given.
If an invoice contains a document level allowance whose VAT category code (BT-95) is exempt from VAT, then the Seller VAT identifier (BT-31), the Seller tax registration identifier (BT-32) and/or the Seller tax representative VAT identifier (BT-63) must be given.
If an invoice contains a document level charge whose VAT category code (BT-102) is exempt from VAT, then the Seller VAT identifier (BT-31), the Seller tax registration identifier (BT-32) and/or the Seller tax representative VAT identifier (BT-63) must be given.
In an invoice line whose invoiced item VAT category code (BT-151) is exempt from VAT, the invoiced item VAT rate (BT-152) must be 0 (zero).
In a document level allowance whose VAT category code (BT-95) is exempt from VAT, the document level allowance VAT rate (BT-96) must be 0 (zero).
In a document level charge whose VAT category code (BT-102) is exempt from VAT, the document level charge VAT rate (BT-103) must be 0 (zero).
In a VAT breakdown with the VAT category code (BT-118) exempt from VAT, the VAT category taxable amount (BT-116) must equal the sum of the invoice line net amounts minus the allowances plus the charges that are exempt from VAT.
In a VAT breakdown with the VAT category code (BT-118) exempt from VAT, the VAT category tax amount (BT-117) must be 0 (zero).
A VAT breakdown with the VAT category code (BT-118) exempt from VAT must contain a VAT exemption reason code (BT-121) or a VAT exemption reason text (BT-120).
Check BR-E 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.