Reverse charge on e-invoices: getting category AE right

How to issue an EN 16931 compliant reverse-charge invoice: VAT category AE, exemption reason VATEX-EU-AE, both VAT numbers and zero rates.

4 min read · Updated 28 Oct 2026

Under reverse charge the buyer accounts for VAT instead of the seller — typical for cross-border B2B services within the EU. On an e-invoice this is expressed with VAT category AE.

The rules

BR-AE-02 — the invoice must contain the seller VAT number and the buyer VAT number (or buyer legal registration).
BR-AE-05 — the VAT rate on AE lines must be 0.
BR-AE-10 — the VAT breakdown needs exemption reason code VATEX-EU-AE or the text 'Reverse charge'.
BR-AE-08 — the taxable amount must equal the sum of AE lines, allowances and charges.

Example breakdown

<cac:TaxSubtotal>
  <cbc:TaxableAmount currencyID="EUR">5670.00</cbc:TaxableAmount>
  <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
  <cac:TaxCategory>
    <cbc:ID>AE</cbc:ID>
    <cbc:Percent>0</cbc:Percent>
    <cbc:TaxExemptionReasonCode>VATEX-EU-AE</cbc:TaxExemptionReasonCode>
    <cbc:TaxExemptionReason>Reverse charge</cbc:TaxExemptionReason>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:TaxCategory>
</cac:TaxSubtotal>

AE or K?

Use K (intra-community supply) for goods shipped to a VAT-registered buyer in another member state; it also requires a delivery date and deliver-to country. Use AE for services and domestic reverse-charge schemes.

This guide summarises public specifications and official guidance. It is not legal or tax advice — check with your adviser for your situation.