UNTDID 5305 (VAT category code)
UNTDID 5305 states which VAT regime applies to each amount on the invoice.
Definition
UNTDID 5305 ("Duty or tax or fee category code") is a UN/EDIFACT code list that designates the VAT category of a line, an allowance/charge or a breakdown. It is one of the most structuring codes in EN 16931, because it determines whether and how VAT is calculated.
Main categories
S— standard rated;Z— zero rated;E— exempt;AE— reverse charge;K— intra-Community supply (VAT exempt intra-EU);G— export outside the EU (free export item);O— out of scope of VAT.
Good to know
Each category triggers dedicated EN 16931 business rules (e.g. BR-S for S, BR-Z for Z, BR-E for E, BR-AE for AE). Tax-free categories (E, AE, G, K, O) require a 0 VAT rate and, in most cases, an exemption reason (BT-120 text and/or VATEX code BT-121).