BR-AE-06: Reverse-charge items must have a VAT rate of 0 (discount)

What it means

When a discount on the whole invoice has VAT category AE (reverse charge), its VAT rate (BT-96) must be 0 (zero).

Why it matters

No VAT is charged in this category, so a rate above zero contradicts the category and makes the VAT figures unreliable. The invoice is rejected.

How to fix it

In your invoicing software, open the item or the line and check its VAT setting. Keep category AE with rate 0. If the item does carry VAT, switch it to the standard rate (S) or the reduced rate that applies.

The rule as published

In a Document level allowance (BG-20) where the Document level allowance VAT category code (BT-95) is "Reverse charge" the Document level allowance VAT rate (BT-96) shall be 0 (zero).

Business terms: BG-20, BT-95, BT-96

Where this rule applies