BR-FXEXT-AE-08REV: Reverse-charge amounts should match per exemption reason

What it means

This is the second form of the check in BR-FXEXT-AE-08B. Each AE line, discount or charge that gives an exemption reason must give the same text and code as the AE row of the VAT breakdown it belongs to (text BT-120, code BT-121). The taxable amount (BT-116) of that row is then the sum of just those lines, minus those discounts, plus those charges, with 0.01 allowed for each amount. Only normal lines (DETAIL) and lines with no subtype count. This is a warning, not an error.

Why it matters

With several reasons for reverse charge on one invoice, the buyer and the tax authority need to see which amount belongs to which reason. If the reasons differ between the lines and the breakdown, that link is broken. Today the invoice is still accepted, but the plain sum is expected to be dropped later.

How to fix it

Compare the exemption reason on each reverse-charge line, discount and charge with the one on the AE row of the VAT breakdown. They must have the same text and the same code. If your invoice has reverse-charge items with different reasons, use a separate AE row for each reason, and give each row the total of its own items. Most invoicing software builds the breakdown from the lines, so a difference usually comes from a reason typed by hand on one line.

The rule as published

In a VAT breakdown (BG-23) where VAT category code (BT-118) is equal to “AE” ("Reverse charge"), Absolute Value of (VAT category taxable amount (BT-116) - ∑ Invoice line net amounts (BT-131) + Σ Document level allowance amounts (BT-92) - Σ Document level charge amounts (BT-99) - Σ Logistics Service fee amounts (BT-x-272)) <= 0,01 * ((Number of line net amounts (BT-131) + Number of Document level allowance amounts (BT-92) + Number of Document level charge amounts (BT-99) + Number of Logistics Service fee amounts (BT-X-272)), where the VAT category code (BT-151, BT-95, BT-102, BT-X-273) is "Reverse charge" (AE), and where applicable the VAT exemption reason and specification code (BT-195, BT-174 and BT-176 and BT-X-592) and the Exemption reason text (BT-194, BT-173 and BT-175 and BT-X-591) are identical with the VAT category VAT exemption reason and specification code (BT-121) and VAT exemption reason text (BT-120), but only for lines where the "Subtype of invoice item" (BT-X-8) has the value "DETAIL" or is not specified.

Business terms: BG-23, BT-92, BT-95, BT-99, BT-102, BT-116, BT-118, BT-120, BT-121, BT-131, BT-151, BT-173, BT-174, BT-175, BT-176, BT-194, BT-195

Where this rule applies