How-to · Updated June 2026

Write a reverse-charge invoice: AE code, mandatory note, VIES

Q: When does reverse charge apply?

For intra-community B2B supplies under Art. 196 of the VAT Directive the tax liability shifts to the recipient if they have a valid VAT ID in another EU country. There are also national reverse-charge cases under § 13b UStG in Germany, for example construction services.

Q: Which tax code goes on the invoice?

On the e-invoice the tax category code AE (VAT reverse charge) is correct, with a tax rate of 0 percent. Using S (standard) with 0 percent by mistake creates a contradiction between code and rate that the XML check rejects in many EU countries.

Q: Which note must appear on the invoice?

A note on the reverse charge, such as 'reverse charge' and the reference to Art. 196 of the VAT Directive. In an XRechnung it goes into the dedicated reason field, in the PDF variant into the text.

Q: Do I have to check the buyer's VAT ID?

Yes. Reverse charge requires the buyer's VAT ID to be valid and active in VIES on the invoice date. If it is not active, the tax liability can fall back to the issuer.

Q: Does Vera help with reverse-charge invoices?

Yes. Vera checks the buyer's VAT ID via VIES, sets the AE code with 0 percent for intra-community B2B and adds the mandatory note, and validates before download.

A reverse-charge invoice shows no VAT, because the tax liability shifts to the recipient. For that to hold, three things have to be right: a buyer VAT ID that is valid in VIES, the correct tax code AE, and the required note. If one is missing, the liability can fall back to the issuer.

TL;DR

Reverse charge for intra-community B2B under Art. 196 of the VAT Directive: no VAT, tax code AE at 0 percent, mandatory reverse-charge note. Condition: the buyer's VAT ID is valid in VIES on the invoice date. The wrong code S instead of AE is often rejected. There are also national § 13b UStG cases. Vera checks VIES, sets AE and the note, validates before download.

When reverse charge applies

The most common case is the intra-community B2B supply under Art. 196 of the VAT Directive: if you supply a business in another EU country with a valid VAT ID, the recipient owes the tax. There are also national reverse-charge cases under § 13b UStG in Germany, for example construction services or certain domestic supplies.

In four steps

Check the conditions Is this an intra-community B2B supply, and does the buyer have a VAT ID from another EU country? Only then does Art. 196 apply.
Check the VAT ID via VIES Check the buyer's VAT ID on the invoice date in VIES. Format-valid is not enough, it must be active. Document the result.
Set the tax code and the note Set the tax category code AE at 0 percent and add the mandatory note, for example 'reverse charge, Art. 196 VAT Directive'.
Produce and validate Produce the e-invoice and validate it. Code and rate must be consistent, otherwise the check rejects it.

Common mistakes

Wrong code: S (standard) at 0 percent instead of AE. Code and rate contradict each other and the check fails.
VAT ID not active: only the format checked, not the active VIES status on the invoice date.
Note missing: no reverse-charge text. It does not always fail technically, but an auditor will object.

Note: Points 1 and 2 are technically checkable, point 3 is the quiet trap because no software necessarily catches the missing text. Vera adds it automatically.

FAQ

When does reverse charge apply?

For intra-community B2B supplies under Art. 196 with a valid buyer VAT ID, and in national cases under § 13b UStG.

Which tax code goes on the invoice?

The code AE at 0 percent. S (standard) at 0 percent is wrong and often rejected.

Which note must appear on the invoice?

A reverse-charge note, for example 'reverse charge, Art. 196 VAT Directive'.

Do I have to check the buyer's VAT ID?

Yes, on the invoice date in VIES. If it is not active, the tax liability can fall back to the issuer.

Does Vera help with reverse-charge invoices?

Yes, Vera checks VIES, sets AE at 0 percent and the mandatory note, and validates before download.

Reverse charge done right, automatically

Vera checks the buyer's VAT ID via VIES, sets the AE code and the mandatory note, and validates before download.

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