BR-AE (Reverse charge rules)

BR-AE is the set of European e-invoice rules where VAT is self-accounted by the buyer.

Definition

The BR-AE prefix in EN 16931 covers VAT category AE, the reverse charge. The seller issues the invoice without VAT and the buyer reports and pays the tax instead.

What the rules check

The BR-AE rules require, among other things, that:

• the VAT rate equals 0 and the VAT amount is zero for category AE;
• the breakdown carries an exemption / reverse-charge reason (text and/or code);
• the VAT identifiers of both the seller and the buyer are present, since the buyer is liable for the tax.

Good to know

Reverse charge is common in construction, cross-border services and subcontracting. The wording "Reverse charge" on the invoice signals that the VAT liability shifts to the buyer; its absence is a frequent compliance failure.