VATEX (VAT exemption reason code)

When an invoice applies no VAT, VATEX encodes the legal reason why.

Definition

VATEX (VAT Exemption code) is a code list maintained for the EN 16931 ecosystem. It provides, in business term BT-121 ("VAT exemption reason code"), a standardised value identifying the legal basis for the absence of VAT.

Role

When a VAT category (BT-118 / UNTDID 5305) indicates an exemption — for example E (exempt), AE (reverse charge), G (export) or K (intra-Community supply) — EN 16931 often requires a reason. VATEX lets you state that reason unambiguously, typically a reference to a specific article of Directive 2006/112/EC.

The matching free text can be carried in BT-120 ("VAT exemption reason text").

Good to know

VATEX codes typically take the form vatex-eu-... (reasons drawn from the EU VAT Directive) or national variants. Choosing a VATEX code consistent with the declared VAT category is required to pass validation rules and avoid rejection by the receiving platform.