VAT Category Codes

Reference for VAT category codes used to classify invoice line items for tax treatment.

Tax Treatment in docs101

In the docs101 UI, you select a Tax Treatment (e.g., "Standard rate", "Reverse charge") instead of a raw VAT category code. The app automatically maps your selection to the correct EN 16931 code listed below. You do not need to memorize these codes.

Tax Treatment	EN 16931 Code
Standard rate	S
Reverse charge	AE
Intra-community	K
Export outside EU	G
Exempt	E
Not subject to VAT	O
Zero-rated	Z
Small business	E

Code Overview

Code	Name	VAT Rate	Description
S	Standard Rate	Country-specific (typically 17-27%)	Normal goods and services subject to full VAT
AE	VAT Reverse Charge	0% (at supplier)	Recipient pays VAT (B2B cross-border services in EU)
O	Not Subject to VAT	0%	Transaction is outside the scope of VAT
G	Free Export	0%	Goods exported outside the EU
K	Intra-Community Supply	0%	Goods sold to VAT-registered business in another EU country
E	Exempt from VAT	0% (no input tax recovery)	VAT-exempt activities (insurance, financial services) and small business exemption (Kleinunternehmerregelung)
Z	Zero Rated	0%	Taxable goods/services at 0% rate

Standard Rate (S)

Use when: Selling goods or services within the same country.

• Full VAT at the country's standard rate
• Supplier charges VAT to the customer
• Most common code for domestic transactions

Example: Consulting services (domestic)
Net: 1,000.00 EUR | VAT 19%: 190.00 EUR | Gross: 1,190.00 EUR

Reverse Charge (AE)

Use when: Providing B2B services to a company in a different EU member state.

• Supplier invoices at 0% VAT
• Customer self-assesses VAT in their country
• Both parties must have valid EU VAT IDs
• Invoice must include reverse charge notice

Example: Software development for French company
Net: 1,000.00 EUR | VAT: 0.00 EUR | Gross: 1,000.00 EUR
Note: "Reverse charge - VAT to be accounted for by the recipient"

Not Subject to VAT (O)

Use when: The transaction is outside the scope of VAT.

• Used for transactions that are not subject to VAT legislation
• Common for non-EU B2B services where reverse charge does not apply
• Can be freely combined with any other tax treatment on the same invoice

Not for small businesses

The Kleinunternehmerregelung (small business exemption) now uses code E via the dedicated "Small business" treatment — not code O. See the Exempt section below.

Free Export (G)

Use when: Exporting goods outside the EU.

• 0% VAT on the invoice
• Supplier can reclaim input VAT
• Proof of export required (shipping documents, customs declaration)

Intra-Community Supply (K)

Use when: Selling goods to a VAT-registered business in another EU country.

• Goods must be physically shipped to the buyer's EU country
• Buyer must have a valid VAT ID
• Supplier invoices at 0% VAT
• Buyer self-assesses VAT at their local rate

K vs AE

Use K for physical goods shipped within the EU. Use AE for services provided cross-border within the EU.

Exempt (E)

Use when: Supplying VAT-exempt services or operating under the small business exemption.

• No VAT charged
• Supplier cannot reclaim input VAT on related costs
• Examples: insurance, financial services, certain education and healthcare

Code E is shared by two docs101 tax treatments:

• Exempt — for services that are exempt from VAT by law (medical, education, financial)
• Small business — for the Kleinunternehmerregelung (§ 19 UStG in Germany). Cannot be mixed with other treatments on the same invoice

Zero Rated (Z)

Use when: Supplying goods that are taxable but at a 0% rate.

• 0% VAT on the invoice
• Supplier can reclaim input VAT (unlike Exempt)
• Examples: certain food items, children's clothing, prescribed medicines (varies by country)

Quick Selection Guide

Scenario	Code
Domestic sale (B2B or B2C)	S
B2B service to EU company	AE
B2B goods to EU company	K
Export goods outside EU	G
Insurance or financial service	E
Small business (Kleinunternehmer)	E