What is BR-Z about?
The BR-Z group covers zero rated supplies: transactions that are taxable but billed at a rate of 0 percent. The marks are rate 0, tax amount 0 and - unlike a true exemption - no reason for exemption. In German B2B trade the zero rate is rare; do not confuse it with exempt supplies (category E) or with the reverse charge procedure. The common thread of the rules: for every zero rated line the seller must carry a tax identifier (VAT identifier, tax registration identifier or that of the tax representative), rate and tax amount must be 0, the VAT breakdown must hold exactly one zero rated entry - and no reason for exemption may appear.
All rules in group BR-Z
If an invoice contains an invoice line, an allowance or a charge with VAT category zero rated, the VAT breakdown must hold exactly one entry with VAT category code (BT-118) zero rated.
If an invoice line has VAT category code (BT-151) zero rated, the invoice 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).
If a document level allowance has VAT category code (BT-95) zero rated, the invoice 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).
If a document level charge has VAT category code (BT-102) zero rated, the invoice 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).
If an invoice line has VAT category code (BT-151) zero rated, the invoiced item VAT rate (BT-152) must be 0 (zero).
If a document level allowance has VAT category code (BT-95) zero rated, the allowance VAT rate (BT-96) must be 0 (zero).
If a document level charge has VAT category code (BT-102) zero rated, the charge VAT rate (BT-103) must be 0 (zero).
In a VAT breakdown entry with VAT category code (BT-118) zero rated, the VAT category taxable amount (BT-116) must equal the sum of the net line amounts minus allowances plus charges that are zero rated.
In a VAT breakdown entry with VAT category code (BT-118) zero rated, the VAT category tax amount (BT-117) must be 0 (zero).
A VAT breakdown entry with VAT category code (BT-118) zero rated must not carry a VAT exemption reason code (BT-121) or a VAT exemption reason text (BT-120).
Check BR-Z 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.