Error code BR-AE-10 means: the VAT breakdown with reverse charge (AE) states no reason.
What does BR-AE-10 mean?
The validator shows this message (as worded in the official rules):
[BR-AE-10]-A VAT breakdown (BG-23) with VAT Category code (BT-118) "Reverse charge" shall have a VAT exemption reason code (BT-121), meaning "Reverse charge" or the VAT exemption reason text (BT-120) "Reverse charge" (or the equivalent standard text in another language).In the VAT breakdown, category AE needs a reason: the code VATEX-EU-AE (BT-121, TaxExemptionReasonCode) or a text such as “Reverse charge” (BT-120, TaxExemptionReason). That way the mandatory reverse charge statement is also in the structured invoice.
Common causes
- The export only puts the “reverse charge” statement in a note or in the PDF.
- The VAT code AE in the software has no linked exemption reason.
- The reason is on the invoice line, but not in the VAT breakdown.
How to fix it as the sender
- In your software, link the code
VATEX-EU-AEor a fixed text to the reverse charge VAT code. - Make sure the export puts that reason in
cac:TaxSubtotal/cac:TaxCategory. - Validate again. In our test, both the code and a text gave a valid invoice.
Received an invoice with this error?
An invoice with this error is not compliant. Ask the supplier for a corrected invoice and do not change the XML yourself.
Example in the XML
❌ Wrong
<cac:TaxSubtotal>
<cbc:TaxableAmount currencyID="EUR">300.00</cbc:TaxableAmount>
<cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
<cac:TaxCategory>
<cbc:ID>AE</cbc:ID>
<cbc:Percent>0</cbc:Percent>
<cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:TaxCategory>
</cac:TaxSubtotal>✅ Correct
<cac:TaxSubtotal>
<cbc:TaxableAmount currencyID="EUR">300.00</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>
<cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:TaxCategory>
</cac:TaxSubtotal>Both snippets come from a complete test invoice that we checked with our validator: the wrong version gives exactly this message, the correct version no errors at all.
Good to know
An exemption (category E) also needs a reason in the VAT breakdown: see BR-E-10.
Check your invoice
Drop your XML into the free validator. You see right away whether this error still occurs, with a link to the explanation for every message.
Official rule
The full rule with its technical test (Schematron) is in the official Peppol documentation:
Related error codes
- BR-AE-02: A reverse charge invoice (AE) lacks the seller’s VAT number or the buyer’s identification.
- BR-E-10: The VAT breakdown with an exemption (E) states no reason.
Frequently asked questions about BR-AE-10
Should I use the code or the text?
Either is enough for the rule. The code VATEX-EU-AE is unambiguous for software, the text is readable for people. You may also use both.
Where is the reason in the XML?
In cac:TaxTotal/cac:TaxSubtotal/cac:TaxCategory, in cbc:TaxExemptionReasonCode or cbc:TaxExemptionReason.