Guides

EN-16931: Intra-Community Supply (K)

A tax category code indicating the item is Tax exempt due to an intra-community supply in the European Economic Area.

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Party IDs

If a Document contains a line where the invoiced item's Tax Category Code is Intra-Community Supply, or an allowance or charge with the same Tax Category Code, then you must include the Supplier's Tax Registration ID and/or the their Tax Representative's ID.

If one of the following elements exists:

  • Invoice/InvoiceLine/Item/ClassifiedTaxCategory/ID = K

or

  • /Invoice/AllowanceCharge[ChargeIndicator='false']/TaxCategory/ID = K

or

  • /Invoice/AllowanceCharge[ChargeIndicator='true']/TaxCategory/ID = K

Then the following elements are required:

  • /Invoice/AccountingSupplierParty/Party/PartyTaxScheme/CompanyID
  • /Invoice/TaxRepresentativeParty/Party/PartyTaxScheme/CompanyID
  • /Invoice/AccountingCustomerParty/Party/PartyTaxScheme/CompanyID

The Buyer's legal entity is not required. However, we do recommend that you include the following element:

  • /Invoice/AccountingCustomerParty/Party/PartyLegalEntity/CompanyID

Tax Rate

If an invoiced item's Tax Category is Intra-Community Supply, the tax rate for the item must be zero.

If Invoice/InvoiceLine/Item/ClassifiedTaxCategory/ID = K, then Invoice/InvoiceLine/Item/ClassifiedTaxCategory/Percent must be zero.

If a Document-level Allowance's Tax Category is Exempt from VAT, the Document-level allowance's tax rate must be zero.

If Invoice/AllowanceCharge[ChargeIndicator='false']/TaxCategory/ID = K, then Invoice/AllowanceCharge[ChargeIndicator='false']/TaxCategory/Percent must be zero.

If a Document-level Charge's Tax Category is Exempt from VAT, the Document-level charge's tax rate must be zero.

If Invoice/AllowanceCharge[ChargeIndicator='true']/TaxCategory/ID = K, then Invoice/AllowanceCharge[ChargeIndicator='true']/TaxCategory/Percent must be zero.

Tax Amount

If a Tax Total includes a Tax Category Code that is Intra-Community Supply, the Tax Amount must be zero.

If Invoice/TaxTotal/TaxSubtotal/TaxCategory/ID = K, then Invoice/TaxTotal/TaxSubtotal/TaxAmount must be zero.

Tax Exemption

If a Tax Total uses the Intra-Community Supply Tax Category, then you must specify a reason for the exemption.

For example, if Invoice/cac:TaxTotal/cac:TaxSubtotal/cac:TaxCategory/cbc:ID = K, then one of the the following elements must be provided:

  • /Invoice/TaxTotal/TaxSubtotal/TaxCategory/TaxExemptionReasonCode = VATEX-EU-K

or

  • Invoice/TaxTotal/TaxSubtotal/TaxCategory/TaxExemptionReason = Educational Book Exempt from VAT

Additional Rules

If a Tax Total uses the Intra-Community Supply Tax Category, then the Actual Delivery Date or the Invoicing Period must be included and cannot be blank.

If Invoice/TaxTotal/TaxSubtotal/TaxCategory/ID = K, then one of the following elements must be present and cannot be blank:

  • Invoice/cac:Delivery/cbc:ActualDeliveryDate

or

  • Invoice/InvoicePeriod/StartDate and Invoice/InvoicePeriod/EndDate

You must also provide the country code of the delivered to country in the /Invoice/Delivery/DeliveryLocation/Address/Country/IdentificationCode element.

Example

<Invoice>
    <cac:InvoicePeriod>
        <!-- Invoice Period (or Actual Delivery Date) -->
        <cbc:StartDate>2024-10-01</cbc:StartDate>
        <cbc:EndDate>2024-10-31</cbc:EndDate>
    </cac:InvoicePeriod>
    <!-- code omitted for clarity -->
    <cac:AccountingSupplierParty>
        <cac:Party>
            <cac:PartyTaxScheme> 
                <!-- Seller Tax Registration Identifier -->
                <cbc:CompanyID>EE76576657</cbc:CompanyID>
                <cac:TaxScheme>
                    <cbc:ID>VAT</cbc:ID>  
                </cac:TaxScheme>
            </cac:PartyTaxScheme>
            <!-- code omitted for clarity -->
        </cac:Party>
    </cac:AccountingSupplierParty>
    <cac:AccountingCustomerParty>
        <cac:Party>
            <cac:PartyTaxScheme> 
                <!-- Buyer Tax Registration Identifier -->
                <cbc:CompanyID>EE22334455</cbc:CompanyID>
                <cac:TaxScheme>
                    <cbc:ID>VAT</cbc:ID>  
                </cac:TaxScheme>
            </cac:PartyTaxScheme>
            <!-- code omitted for clarity -->
        </cac:Party>
    </cac:AccountingCustomerParty>
    <cac:Delivery>
        <!-- Actual Delivery Date (or Invoice Period) -->
        <cbc:ActualDeliveryDate>2017-11-01</cbc:ActualDeliveryDate>
        <cac:DeliveryLocation>
            <!-- code omitted for clarity -->
            <cac:Address>
                <!-- code omitted for clarity -->
                <cac:Country>
                    <!-- Deliver To Country Code -->
                    <cbc:IdentificationCode>SE</cbc:IdentificationCode>
                </cac:Country>
            </cac:Address>
        </cac:DeliveryLocation>
        <!-- code omitted for clarity -->
    </cac:Delivery>
    <!-- code omitted for clarity -->
    <cac:TaxTotal>
        <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
        <cac:TaxSubtotal>
            <cbc:TaxableAmount currencyID="EUR">1325</cbc:TaxableAmount>
            <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
            <cac:TaxCategory>
                <!-- Tax Category Code -->
                <cbc:ID>K</cbc:ID>
                <cbc:Percent>0.00</cbc:Percent>
                <cbc:TaxExemptionReasonCode>VATEX-EU-IC</cbc:TaxExemptionReasonCode>
                  <cbc:TaxExemptionReason>Intra-community supply</cbc:TaxExemptionReason>              
                <cac:TaxScheme>
                    <cbc:ID>VAT</cbc:ID>
                </cac:TaxScheme>
            </cac:TaxCategory>
        </cac:TaxSubtotal>
    </cac:TaxTotal>
    <!-- code omitted for clarity -->
    <cac:InvoiceLine>
        <!-- code omitted for clarity -->
        <cac:Item> 
            <cac:ClassifiedTaxCategory>
                <!-- Tax Category Code -->
                <cbc:ID>K</cbc:ID>
                <cbc:Percent>0.00</cbc:Percent>
                <cac:TaxScheme>
                    <cbc:ID>VAT</cbc:ID>
                </cac:TaxScheme>
            </cac:ClassifiedTaxCategory>
        </cac:Item> 
        <!-- code omitted for clarity -->
    </cac:InvoiceLine>
    <!-- code omitted for clarity -->
</Invoice>

Updated 7 days ago