E-Invoice (XRechnung, DE): Invalid VAT category/exemption config for small business (Kleinunternehmer)

Self-Hosted | v5
1

Version v5.12.08

Environment: Self-Hosted, baremetal on Debian 12

Checklist

  • Can you replicate the issue on our v5 demo site https://demo.invoiceninja.com or Invoice Ninja?
    Not tried – issue seems to be related to e-invoice settings in general.
  • Have you searched existing issues?
    Yes, nothing specific found regarding VAT category/exemption for German “Kleinunternehmerregelung”.
  • Have you inspected the logs in storage/logs/laravel.log for any errors?
    No errors. The invoice is generated, but the resulting XML fails validation.

Describe the bug

I’m trying to generate a compliant e-invoice (XRechnung / EN16931) in Germany using Invoice Ninja v5.12.08.
As a small business under the Kleinunternehmerregelung (§19 UStG), I do not charge VAT, but the e-invoice must contain correct exemption metadata.

I’m validating the exported XML using the official validator for German XRechnungen:

The invoice fails validation with the following 3 critical errors:

Code Message
BR-Z-01 One line uses VAT category code Z (Zero rated), but it must be E (Exempt from VAT) instead.
BR-E-08 VAT breakdown (BasisAmount) is 0.00, but it should equal the net line total when VAT is exempt.
BR-CL-22 ExemptionReasonCode value (e.g. VATNOTREG) is not a valid CEF VATEX code. It must be something like VATEX-DE-509.

Steps To Reproduce

  1. Create an invoice with 0% tax as a self-hosted user under small business exemption rules in Germany.
  2. Export the e-invoice XML via Invoice Ninja.
  3. Validate the file on https://erechnungsvalidator.service-bw.de/

Expected Behavior

The XML should correctly reflect the following:

  • VAT Category Code: E (Exempt from VAT)
  • Correct BasisAmount (equal to line net total, not 0)
  • Exemption reason code: VATEX-DE-509 (not generic VATNOTREG)

Additional context

This is required for legally compliant invoicing under XRechnung rules in Germany. I would like to know:

  • Where in the UI and/or product settings can I configure:
    • that all taxes are applied per line (not invoice total)?
    • the correct VAT category code (E)?
    • the exemption reason code like VATEX-DE-509?

I do not want to manually edit XML after generation – it should be produced correctly by Invoice Ninja.

Logs

No errors in Laravel logs. Invoice is generated successfully.

2

Hi,

I suggest asking in a discussion on GitHub

3

@Starbase12 : Issue solved?