How to put reverse charge on a Peppol invoice (VAT category AE)

Updated 2026-11-12

When you sell services to a business customer in another EU country, VAT is often reverse charged: you charge no VAT, and your customer accounts for it in their own country. On a Peppol BIS 3.0 invoice this is expressed with VAT category AE.

Whether reverse charge applies to your sale depends on the type of supply and the countries involved. Check with your accountant; this guide only covers how to express it correctly on the e-invoice.

What the invoice must contain

Requirement	Why
Line VAT category `AE` with rate `0`	Marks the line as reverse charged
A VAT breakdown for category `AE` with taxable amount and VAT amount `0.00`	Totals must reconcile per category
An exemption reason, e.g. code `VATEX-EU-AE` and text "Reverse charge"	Required for this category
Your VAT number	Required by EN 16931 rule `BR-AE-02`
Your customer's VAT number (or their legal registration number)	Required by the same rule

If these are missing, the invoice fails rule BR-AE-02 and a Peppol receiver may reject it. In practice, use your customer's VAT number: it is what makes reverse charge apply.

Example (simplified)

<cac:TaxSubtotal>
  <cbc:TaxableAmount currencyID="EUR">6500.00</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>
    <cbc:TaxExemptionReason>Reverse charge</cbc:TaxExemptionReason>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:TaxCategory>
</cac:TaxSubtotal>

Doing it with our tool

In the invoice generator, choose Reverse charge as the VAT type on the line. The tool adds the AE category, the exemption code and the VAT breakdown, and warns you if a VAT number is missing.