Guides
Tax Classes
User guide for choosing and using VAT tax classes in API invoice payloads.
This guide explains which tax class to use in your API payload, when to use it, and provides ready-to-use JSON examples.
Choose your tax class
Choose the class that matches the legal VAT treatment of the invoice line:
- S: Standard VAT rate applies. Use for normal domestic taxable sales.
- Z: VAT is 0 percent (zero rated). Use when the supply is taxable but the applicable rate is 0.
- E: VAT exempt. Use when the supply is legally exempt.
- AE: Reverse charge. Use when the buyer accounts for VAT.
- K: Intra-community exempt supply. Use for EEA/EU cross-border exempt supply scenarios.
- G: Free export item, VAT not charged. Use for export transactions.
- O: Outside scope of VAT. Use when tax does not apply to the service.
- L: Canary Islands indirect tax regime (IGIC).
- M: Ceuta and Melilla tax regime (IPSI).
You can have multiple VAT percentages within the same class whenever that class legally supports multiple rates. In practice this is most common for S.
If your local tax advisor or legal requirements specify an exemption reason, provide it accordingly in the payload.
Standard VAT rate
Class S is for standard-rated VAT. You can use one or multiple rates in the same invoice.
Standard VAT with a single rate
Use this when all standard-rated lines use one VAT rate.
Tax Class S - Single Rate
{
"invoice_number": "TAX-S-ONE-001",
"invoice_issue_date": "2026-07-17",
"invoice_type_code": 380,
"invoice_currency_code": "EUR",
"buyer_reference": "TAX-GUIDE-S-ONE",
"payment_terms": "Payable within 14 days",
"seller": {
"name": "Example Seller GmbH",
"vat_identifier": "DE123456789",
"electronic_address": {
"value": "seller@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Berlin",
"post_code": "10115",
"country_code": "DE",
"address_line_1": "Invalidenstrasse 116"
},
"contact": {
"point": "Sales Team",
"telephone_number": "+49 30 123456",
"email_address": "seller@example.com"
}
},
"buyer": {
"vat_identifier": "DE987654321",
"name": "Example Buyer AG",
"electronic_address": {
"value": "buyer@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Hamburg",
"post_code": "20095",
"country_code": "DE",
"address_line_1": "Spitalerstrasse 10"
}
},
"payment_instructions": {
"payment_means_type_code": "30",
"credit_transfer": [
{
"payment_account_identifier": "DE12500105170648489890"
}
]
},
"document_totals": {
"sum_of_invoice_line_net_amount": 100,
"invoice_total_amount_without_vat": 100,
"invoice_total_vat_amount": 19,
"invoice_total_amount_with_vat": 119,
"amount_due_for_payment": 119
},
"vat_breakdown": [
{
"vat_category_taxable_amount": 100,
"vat_category_tax_amount": 19,
"vat_category_code": "S",
"vat_category_rate": 19
}
],
"invoice_line": [
{
"invoice_line_identifier": "1",
"invoiced_quantity": 1,
"invoiced_quantity_unit_of_measure_code": "H87",
"invoice_line_net_amount": 100,
"price_details": {
"item_net_price": 100
},
"line_vat_information": {
"invoiced_item_vat_category_code": "S",
"invoiced_item_vat_rate": 19
},
"item_information": {
"name": "Consulting Service"
}
}
]
}
Standard VAT with multiple rates
Use this when standard-rated lines contain different VAT rates (for example 19 and 7).
Tax Class S - Multiple Rates
{
"invoice_number": "TAX-S-MULTI-001",
"invoice_issue_date": "2026-07-17",
"invoice_type_code": 380,
"invoice_currency_code": "EUR",
"buyer_reference": "TAX-GUIDE-S-MULTI",
"payment_terms": "Payable within 14 days",
"seller": {
"name": "Example Seller GmbH",
"vat_identifier": "DE123456789",
"electronic_address": {
"value": "seller@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Berlin",
"post_code": "10115",
"country_code": "DE",
"address_line_1": "Invalidenstrasse 116"
},
"contact": {
"point": "Sales Team",
"telephone_number": "+49 30 123456",
"email_address": "seller@example.com"
}
},
"buyer": {
"vat_identifier": "DE987654321",
"name": "Example Buyer AG",
"electronic_address": {
"value": "buyer@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Hamburg",
"post_code": "20095",
"country_code": "DE",
"address_line_1": "Spitalerstrasse 10"
}
},
"payment_instructions": {
"payment_means_type_code": "30",
"credit_transfer": [
{
"payment_account_identifier": "DE12500105170648489890"
}
]
},
"document_totals": {
"sum_of_invoice_line_net_amount": 150,
"invoice_total_amount_without_vat": 150,
"invoice_total_vat_amount": 22.5,
"invoice_total_amount_with_vat": 172.5,
"amount_due_for_payment": 172.5
},
"vat_breakdown": [
{
"vat_category_taxable_amount": 100,
"vat_category_tax_amount": 19,
"vat_category_code": "S",
"vat_category_rate": 19
},
{
"vat_category_taxable_amount": 50,
"vat_category_tax_amount": 3.5,
"vat_category_code": "S",
"vat_category_rate": 7
}
],
"invoice_line": [
{
"invoice_line_identifier": "1",
"invoiced_quantity": 1,
"invoiced_quantity_unit_of_measure_code": "H87",
"invoice_line_net_amount": 100,
"price_details": {
"item_net_price": 100
},
"line_vat_information": {
"invoiced_item_vat_category_code": "S",
"invoiced_item_vat_rate": 19
},
"item_information": {
"name": "Standard-rated service"
}
},
{
"invoice_line_identifier": "2",
"invoiced_quantity": 1,
"invoiced_quantity_unit_of_measure_code": "H87",
"invoice_line_net_amount": 50,
"price_details": {
"item_net_price": 50
},
"line_vat_information": {
"invoiced_item_vat_category_code": "S",
"invoiced_item_vat_rate": 7
},
"item_information": {
"name": "Reduced-rated goods"
}
}
]
}
Other tax classes
Z (Zero rated)
Use Z when the transaction is taxable in principle, but the applicable VAT is 0%.
Tax Class Z - Zero Rated
{
"invoice_number": "TAX-Z-001",
"invoice_issue_date": "2026-07-17",
"invoice_type_code": 380,
"invoice_currency_code": "EUR",
"buyer_reference": "TAX-GUIDE-Z",
"payment_terms": "Payable within 14 days",
"seller": {
"name": "Example Seller GmbH",
"vat_identifier": "DE123456789",
"electronic_address": {
"value": "seller@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Berlin",
"post_code": "10115",
"country_code": "DE",
"address_line_1": "Invalidenstrasse 116"
},
"contact": {
"point": "Sales Team",
"telephone_number": "+49 30 123456",
"email_address": "seller@example.com"
}
},
"buyer": {
"vat_identifier": "DE987654321",
"name": "Example Buyer AG",
"electronic_address": {
"value": "buyer@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Hamburg",
"post_code": "20095",
"country_code": "DE",
"address_line_1": "Spitalerstrasse 10"
}
},
"payment_instructions": {
"payment_means_type_code": "30",
"credit_transfer": [
{
"payment_account_identifier": "DE12500105170648489890"
}
]
},
"document_totals": {
"sum_of_invoice_line_net_amount": 100,
"invoice_total_amount_without_vat": 100,
"invoice_total_vat_amount": 0,
"invoice_total_amount_with_vat": 100,
"amount_due_for_payment": 100
},
"vat_breakdown": [
{
"vat_category_taxable_amount": 100,
"vat_category_tax_amount": 0,
"vat_category_code": "Z",
"vat_category_rate": 0
}
],
"invoice_line": [
{
"invoice_line_identifier": "1",
"invoiced_quantity": 1,
"invoiced_quantity_unit_of_measure_code": "H87",
"invoice_line_net_amount": 100,
"price_details": {
"item_net_price": 100
},
"line_vat_information": {
"invoiced_item_vat_category_code": "Z",
"invoiced_item_vat_rate": 0
},
"item_information": {
"name": "Zero-rated item"
}
}
]
}
E (Exempt)
Use E when the supply is exempt from VAT under the relevant legal exemption.
Tax Class E - Exempt
{
"invoice_number": "TAX-E-001",
"invoice_issue_date": "2026-07-17",
"invoice_type_code": 380,
"invoice_currency_code": "EUR",
"buyer_reference": "TAX-GUIDE-E",
"payment_terms": "Payable within 14 days",
"seller": {
"name": "Example Seller GmbH",
"vat_identifier": "DE123456789",
"electronic_address": {
"value": "seller@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Berlin",
"post_code": "10115",
"country_code": "DE",
"address_line_1": "Invalidenstrasse 116"
},
"contact": {
"point": "Sales Team",
"telephone_number": "+49 30 123456",
"email_address": "seller@example.com"
}
},
"buyer": {
"vat_identifier": "DE987654321",
"name": "Example Buyer AG",
"electronic_address": {
"value": "buyer@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Hamburg",
"post_code": "20095",
"country_code": "DE",
"address_line_1": "Spitalerstrasse 10"
}
},
"payment_instructions": {
"payment_means_type_code": "30",
"credit_transfer": [
{
"payment_account_identifier": "DE12500105170648489890"
}
]
},
"document_totals": {
"sum_of_invoice_line_net_amount": 100,
"invoice_total_amount_without_vat": 100,
"invoice_total_vat_amount": 0,
"invoice_total_amount_with_vat": 100,
"amount_due_for_payment": 100
},
"vat_breakdown": [
{
"vat_category_taxable_amount": 100,
"vat_category_tax_amount": 0,
"vat_category_code": "E",
"vat_category_rate": 0,
"vat_exemption_reason_code": "VATEX-EU-132"
}
],
"invoice_line": [
{
"invoice_line_identifier": "1",
"invoiced_quantity": 1,
"invoiced_quantity_unit_of_measure_code": "H87",
"invoice_line_net_amount": 100,
"price_details": {
"item_net_price": 100
},
"line_vat_information": {
"invoiced_item_vat_category_code": "E",
"invoiced_item_vat_rate": 0
},
"item_information": {
"name": "Exempt service"
}
}
]
}
AE (Reverse charge)
Use AE when reverse-charge rules apply and the buyer is responsible for accounting for VAT.
Tax Class AE - Reverse Charge
{
"invoice_number": "TAX-AE-001",
"invoice_issue_date": "2026-07-17",
"invoice_type_code": 380,
"invoice_currency_code": "EUR",
"buyer_reference": "TAX-GUIDE-AE",
"payment_terms": "Payable within 14 days",
"seller": {
"name": "Example Seller GmbH",
"vat_identifier": "DE123456789",
"electronic_address": {
"value": "seller@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Berlin",
"post_code": "10115",
"country_code": "DE",
"address_line_1": "Invalidenstrasse 116"
},
"contact": {
"point": "Sales Team",
"telephone_number": "+49 30 123456",
"email_address": "seller@example.com"
}
},
"buyer": {
"vat_identifier": "DE987654321",
"name": "Example Buyer AG",
"electronic_address": {
"value": "buyer@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Vienna",
"post_code": "1010",
"country_code": "AT",
"address_line_1": "Stephansplatz 1"
}
},
"payment_instructions": {
"payment_means_type_code": "30",
"credit_transfer": [
{
"payment_account_identifier": "DE12500105170648489890"
}
]
},
"document_totals": {
"sum_of_invoice_line_net_amount": 100,
"invoice_total_amount_without_vat": 100,
"invoice_total_vat_amount": 0,
"invoice_total_amount_with_vat": 100,
"amount_due_for_payment": 100
},
"vat_breakdown": [
{
"vat_category_taxable_amount": 100,
"vat_category_tax_amount": 0,
"vat_category_code": "AE",
"vat_category_rate": 0,
"vat_exemption_reason_code": "VATEX-EU-AE"
}
],
"invoice_line": [
{
"invoice_line_identifier": "1",
"invoiced_quantity": 1,
"invoiced_quantity_unit_of_measure_code": "H87",
"invoice_line_net_amount": 100,
"price_details": {
"item_net_price": 100
},
"line_vat_information": {
"invoiced_item_vat_category_code": "AE",
"invoiced_item_vat_rate": 0
},
"item_information": {
"name": "Reverse-charge consulting"
}
}
]
}
K (Intra-community supply)
Use K for VAT-exempt intra-community supplies of goods or services within the EEA/EU context.
Tax Class K - Intra Community
{
"invoice_number": "TAX-K-001",
"invoice_issue_date": "2026-07-17",
"invoice_type_code": 380,
"invoice_currency_code": "EUR",
"buyer_reference": "TAX-GUIDE-K",
"payment_terms": "Payable within 14 days",
"delivery_information": {
"actual_delivery_date": "2025-10-10",
"deliver_to_address": {
"city": "Madrid",
"post_code": "28001",
"country_code": "ES",
"address_line_1": "Calle de Serrano 45"
}
},
"seller": {
"name": "Example Seller GmbH",
"vat_identifier": "DE123456789",
"electronic_address": {
"value": "seller@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Berlin",
"post_code": "10115",
"country_code": "DE",
"address_line_1": "Invalidenstrasse 116"
},
"contact": {
"point": "Sales Team",
"telephone_number": "+49 30 123456",
"email_address": "seller@example.com"
}
},
"buyer": {
"vat_identifier": "DE987654321",
"name": "Example Buyer AG",
"electronic_address": {
"value": "buyer@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Madrid",
"post_code": "28001",
"country_code": "ES",
"address_line_1": "Calle de Serrano 45"
}
},
"payment_instructions": {
"payment_means_type_code": "30",
"credit_transfer": [
{
"payment_account_identifier": "DE12500105170648489890"
}
]
},
"document_totals": {
"sum_of_invoice_line_net_amount": 100,
"invoice_total_amount_without_vat": 100,
"invoice_total_vat_amount": 0,
"invoice_total_amount_with_vat": 100,
"amount_due_for_payment": 100
},
"vat_breakdown": [
{
"vat_category_taxable_amount": 100,
"vat_category_tax_amount": 0,
"vat_category_code": "K",
"vat_category_rate": 0,
"vat_exemption_reason_code": "VATEX-EU-IC"
}
],
"invoice_line": [
{
"invoice_line_identifier": "1",
"invoiced_quantity": 1,
"invoiced_quantity_unit_of_measure_code": "H87",
"invoice_line_net_amount": 100,
"price_details": {
"item_net_price": 100
},
"line_vat_information": {
"invoiced_item_vat_category_code": "K",
"invoiced_item_vat_rate": 0
},
"item_information": {
"name": "Intra-community supply"
}
}
]
}
G (Export)
Use G for exports where VAT is not charged due to export treatment.
Tax Class G - Export
{
"invoice_number": "TAX-G-001",
"invoice_issue_date": "2026-07-17",
"invoice_type_code": 380,
"invoice_currency_code": "EUR",
"buyer_reference": "TAX-GUIDE-G",
"payment_terms": "Payable within 14 days",
"seller": {
"name": "Example Seller GmbH",
"vat_identifier": "DE123456789",
"electronic_address": {
"value": "seller@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Berlin",
"post_code": "10115",
"country_code": "DE",
"address_line_1": "Invalidenstrasse 116"
},
"contact": {
"point": "Sales Team",
"telephone_number": "+49 30 123456",
"email_address": "seller@example.com"
}
},
"buyer": {
"vat_identifier": "DE987654321",
"name": "Example Buyer AG",
"electronic_address": {
"value": "buyer@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Hamburg",
"post_code": "20095",
"country_code": "DE",
"address_line_1": "Spitalerstrasse 10"
}
},
"payment_instructions": {
"payment_means_type_code": "30",
"credit_transfer": [
{
"payment_account_identifier": "DE12500105170648489890"
}
]
},
"document_totals": {
"sum_of_invoice_line_net_amount": 100,
"invoice_total_amount_without_vat": 100,
"invoice_total_vat_amount": 0,
"invoice_total_amount_with_vat": 100,
"amount_due_for_payment": 100
},
"vat_breakdown": [
{
"vat_category_taxable_amount": 100,
"vat_category_tax_amount": 0,
"vat_category_code": "G",
"vat_category_rate": 0,
"vat_exemption_reason_code": "VATEX-EU-G"
}
],
"invoice_line": [
{
"invoice_line_identifier": "1",
"invoiced_quantity": 1,
"invoiced_quantity_unit_of_measure_code": "H87",
"invoice_line_net_amount": 100,
"price_details": {
"item_net_price": 100
},
"line_vat_information": {
"invoiced_item_vat_category_code": "G",
"invoiced_item_vat_rate": 0
},
"item_information": {
"name": "Export goods"
}
}
]
}
O (Outside scope)
Use O when the service is outside the scope of VAT and tax does not apply.
Tax Class O - Outside Scope
{
"invoice_number": "TAX-O-001",
"invoice_issue_date": "2026-07-17",
"invoice_type_code": 380,
"invoice_currency_code": "EUR",
"buyer_reference": "TAX-GUIDE-O",
"payment_terms": "Payable within 14 days",
"seller": {
"identifier": [
{
"scheme_identifier": "0166",
"value": "DE123456789"
}
],
"name": "Example Seller GmbH",
"electronic_address": {
"value": "seller@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Berlin",
"post_code": "10115",
"country_code": "DE",
"address_line_1": "Invalidenstrasse 116"
},
"contact": {
"point": "Sales Team",
"telephone_number": "+49 30 123456",
"email_address": "seller@example.com"
}
},
"buyer": {
"name": "Example Buyer AG",
"electronic_address": {
"value": "buyer@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Hamburg",
"post_code": "20095",
"country_code": "DE",
"address_line_1": "Spitalerstrasse 10"
}
},
"payment_instructions": {
"payment_means_type_code": "30",
"credit_transfer": [
{
"payment_account_identifier": "DE12500105170648489890"
}
]
},
"document_totals": {
"sum_of_invoice_line_net_amount": 100,
"invoice_total_amount_without_vat": 100,
"invoice_total_vat_amount": 0,
"invoice_total_amount_with_vat": 100,
"amount_due_for_payment": 100
},
"vat_breakdown": [
{
"vat_category_taxable_amount": 100,
"vat_category_tax_amount": 0,
"vat_category_code": "O",
"vat_category_rate": 0,
"vat_exemption_reason_code": "VATEX-EU-O"
}
],
"invoice_line": [
{
"invoice_line_identifier": "1",
"invoiced_quantity": 1,
"invoiced_quantity_unit_of_measure_code": "H87",
"invoice_line_net_amount": 100,
"price_details": {
"item_net_price": 100
},
"line_vat_information": {
"invoiced_item_vat_category_code": "O",
"invoiced_item_vat_rate": null
},
"item_information": {
"name": "Outside-scope service"
}
}
]
}
L (Canary Islands)
Use L for transactions under the Canary Islands IGIC regime.
Tax Class L - Canary Islands
{
"invoice_number": "TAX-L-001",
"invoice_issue_date": "2026-07-17",
"invoice_type_code": 380,
"invoice_currency_code": "EUR",
"buyer_reference": "TAX-GUIDE-L",
"payment_terms": "Payable within 14 days",
"seller": {
"name": "Example Seller GmbH",
"vat_identifier": "DE123456789",
"electronic_address": {
"value": "seller@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Berlin",
"post_code": "10115",
"country_code": "DE",
"address_line_1": "Invalidenstrasse 116"
},
"contact": {
"point": "Sales Team",
"telephone_number": "+49 30 123456",
"email_address": "seller@example.com"
}
},
"buyer": {
"vat_identifier": "DE987654321",
"name": "Example Buyer AG",
"electronic_address": {
"value": "buyer@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Hamburg",
"post_code": "20095",
"country_code": "DE",
"address_line_1": "Spitalerstrasse 10"
}
},
"payment_instructions": {
"payment_means_type_code": "30",
"credit_transfer": [
{
"payment_account_identifier": "DE12500105170648489890"
}
]
},
"document_totals": {
"sum_of_invoice_line_net_amount": 100,
"invoice_total_amount_without_vat": 100,
"invoice_total_vat_amount": 7,
"invoice_total_amount_with_vat": 107,
"amount_due_for_payment": 107
},
"vat_breakdown": [
{
"vat_category_taxable_amount": 100,
"vat_category_tax_amount": 7,
"vat_category_code": "L",
"vat_category_rate": 7
}
],
"invoice_line": [
{
"invoice_line_identifier": "1",
"invoiced_quantity": 1,
"invoiced_quantity_unit_of_measure_code": "H87",
"invoice_line_net_amount": 100,
"price_details": {
"item_net_price": 100
},
"line_vat_information": {
"invoiced_item_vat_category_code": "L",
"invoiced_item_vat_rate": 7
},
"item_information": {
"name": "Canary Islands taxable supply"
}
}
]
}
M (Ceuta and Melilla)
Use M for transactions under the IPSI regime in Ceuta and Melilla.
Tax Class M - Ceuta Melilla
{
"invoice_number": "TAX-M-001",
"invoice_issue_date": "2026-07-17",
"invoice_type_code": 380,
"invoice_currency_code": "EUR",
"buyer_reference": "TAX-GUIDE-M",
"payment_terms": "Payable within 14 days",
"seller": {
"name": "Example Seller GmbH",
"vat_identifier": "DE123456789",
"electronic_address": {
"value": "seller@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Berlin",
"post_code": "10115",
"country_code": "DE",
"address_line_1": "Invalidenstrasse 116"
},
"contact": {
"point": "Sales Team",
"telephone_number": "+49 30 123456",
"email_address": "seller@example.com"
}
},
"buyer": {
"vat_identifier": "DE987654321",
"name": "Example Buyer AG",
"electronic_address": {
"value": "buyer@example.com",
"scheme_identifier": "EM"
},
"postal_address": {
"city": "Hamburg",
"post_code": "20095",
"country_code": "DE",
"address_line_1": "Spitalerstrasse 10"
}
},
"payment_instructions": {
"payment_means_type_code": "30",
"credit_transfer": [
{
"payment_account_identifier": "DE12500105170648489890"
}
]
},
"document_totals": {
"sum_of_invoice_line_net_amount": 100,
"invoice_total_amount_without_vat": 100,
"invoice_total_vat_amount": 4,
"invoice_total_amount_with_vat": 104,
"amount_due_for_payment": 104
},
"vat_breakdown": [
{
"vat_category_taxable_amount": 100,
"vat_category_tax_amount": 4,
"vat_category_code": "M",
"vat_category_rate": 4
}
],
"invoice_line": [
{
"invoice_line_identifier": "1",
"invoiced_quantity": 1,
"invoiced_quantity_unit_of_measure_code": "H87",
"invoice_line_net_amount": 100,
"price_details": {
"item_net_price": 100
},
"line_vat_information": {
"invoiced_item_vat_category_code": "M",
"invoiced_item_vat_rate": 4
},
"item_information": {
"name": "Ceuta/Melilla taxable supply"
}
}
]
}