Reference · EN 16931

VAT category codes on an invoice line (BT-151)

Five codes, one field, and a different set of consequences behind each one. What BT-151 means, and what the standard then expects on the rest of the line. To check a document against the EN 16931 rules, use the free EN 16931 validator.

The Invoiced item VAT category code (BT-151) is a business term on every invoice line. It states which VAT treatment the line falls under. The code names a category; it does not state a rate. EN 16931 draws its allowed values from the UNTDID 5305 duty/tax/fee category code list; this product accepts five of them: Standard rate, Zero rated goods, Exempt from tax, VAT reverse charge, and VAT exempt for intra-community supply of goods.

What each code means

Standard rate (S) is for a supply taxed at a standard rate. Which country's rate that is depends on where the supply is treated as taking place, which turns on what is being supplied and to whom. This page does not state that rule. A line coded S carries a VAT rate (BT-152) greater than zero. The rule about exemption reasons sits on the VAT breakdown rather than on the line. A breakdown coded S must carry no exemption reason.

Zero rated goods (Z) applies to a supply that is taxable in principle but charged at a zero rate. A line coded Z carries a VAT rate of exactly zero. Like the standard-rate case, it carries no exemption reason, because zero rating is not an exemption.

Exempt from tax (E) applies to a supply exempt from VAT under a national exemption. A line coded E carries a VAT rate of exactly zero, and the standard then expects an exemption reason (a code, a text, or both) explaining which exemption applies.

VAT reverse charge (AE) applies when the buyer accounts for the VAT on the supply and the seller charges none. A line coded AE carries a VAT rate of exactly zero, and the standard expects an exemption reason identifying the reverse charge. Because liability shifts to the buyer, an invoice with a reverse-charge line is also expected to identify both parties: the seller by a VAT identifier or a tax registration identifier, and the buyer by a VAT identifier or a legal registration identifier.

VAT exempt for intra-community supply of goods (K) applies to a VAT-exempt intra-EU supply of goods to a VAT-registered buyer in another member state. A line coded K carries a VAT rate of exactly zero, and the standard expects an exemption reason identifying the intra-community supply. An invoice with a K line is also expected to carry a VAT identifier for both seller and buyer, an actual delivery date or invoicing period, and the country code goods are delivered to.

How this product suggests one, and when it does not

A new line can start with a suggested category, built from the seller's and buyer's countries, whether each carries a VAT identifier, and the unit the line is billed in. Equal countries suggest Standard rate; different countries with a VAT-registered buyer suggest Reverse charge for service-style units or Intra-community supply otherwise; a buyer with no VAT identifier falls back to Standard rate. A suggestion only ever fills an empty field and can always be changed.

What this does not cover

This page does not tell a reader which category applies to a given transaction — that judgment, and the VAT registration behind it, belongs to the business issuing the invoice and whoever advises it. No VAT rate or percentage appears anywhere on this page. Rates differ by country and change over time, so check the applicable rate independently. National exemption regimes, reduced-rate schedules, and country-specific reporting obligations are likewise out of scope here.