A VAT exemption (German: Steuerbefreiung, French: Exonération de TVA) applies when a supply of goods or services falls outside the scope of VAT or is explicitly exempt under Swiss or EU VAT law. Exempt supplies still need to appear on the invoice — just at a 0% rate with a mandatory reason explaining why no VAT is charged.
The table below shows the tax category codes used in structured e-invoices (EN 16931, UBL, CII). The code alone isn't enough; a plain-text reason must accompany it:
| Tax category code | Description |
|---|---|
| E | Exempt from VAT |
| O | Services outside scope of tax |
| Z | Zero-rated (different from exempt) |
| AE | VAT reverse charge |
| K | Intra-community supply (EU) |
In Swiss domestic invoicing the most common exemptions are for financial services, healthcare, education, and export supplies.
Key facts
- Must include: exemption reason text (e.g. "Export supply Art. 23 MWSTG")
- EN 16931 element:
BT-121(VAT exemption reason text) andBT-120(reason code) - Swiss legal basis: MWSTG (Mehrwertsteuergesetz) Art. 21–23 — see MWST
- Zero-rated ≠ exempt: zero-rated supplies allow input tax recovery; pure exemptions do not