BR-AF-01: IGIC on the invoice needs an IGIC entry in the VAT breakdown

What it means

A line (BG-25), a discount on the whole invoice (BG-20) or a charge on the whole invoice (BG-21) has the VAT category IGIC (BT-151, BT-95 or BT-102). The VAT breakdown (BG-23) must then contain at least one entry with the category code (BT-118) IGIC. In the file, IGIC is category code L with the tax scheme VAT.

Why it matters

The VAT breakdown is the summary the recipient and the tax authority use to see how much tax is due per category. If items use IGIC but the summary does not show it, the tax is missing from the totals and cannot be checked, so the invoice is rejected.

How to fix it

Look at the VAT summary at the end of the invoice and add one entry for each IGIC rate used, with the taxable amount, the rate and the tax amount. Invoicing software normally builds this summary itself, so if the entry is missing, check that every IGIC item uses the same IGIC tax code. If the items should not carry IGIC, change their category instead.

The rule as published

An Invoice that contains an Invoice line (BG-25), a Document level allowance (BG-20) or a Document level charge (BG-21) where the VAT category code (BT-151, BT-95 or BT-102) is "IGIC" shall contain in the VAT breakdown (BG-23) at least one VAT category code (BT-118) equal with "IGIC".

Business terms: BG-20, BG-21, BG-23, BG-25, BT-95, BT-102, BT-118, BT-151

Where this rule applies