BR-AF-08: IGIC taxable amount must match the lines, charges and discounts

What it means

For each IGIC rate (BT-119) in the VAT breakdown (BG-23), the taxable amount (BT-116) must equal the sum of the invoice line net amounts (BT-131) with IGIC at that rate, plus the charges on the whole invoice (BT-99) at that rate, minus the discounts on the whole invoice (BT-92) at that rate. The check allows a rounding difference of less than 1 in the invoice currency.

Why it matters

The taxable amount is the base the IGIC is worked out from. If it does not match the lines, charges and discounts, the recipient and the tax authority cannot trust the tax amount, and the invoice is rejected.

How to fix it

Take each IGIC rate on its own. Add up the net amounts of the lines at that rate, add the charges at that rate, subtract the discounts at that rate, and use the result as the taxable amount of that breakdown. If the gap is large, a line, charge or discount is probably under the wrong rate or category, or the breakdown for one of the rates is missing. The rate on each item must be exactly the rate of its breakdown.

The rule as published

For each different value of VAT category rate (BT-119) where the VAT category code (BT-118) is "IGIC", the VAT category taxable amount (BT-116) in a VAT breakdown (BG-23) shall equal the sum of Invoice line net amounts (BT-131) plus the sum of document level charge amounts (BT-99) minus the sum of document level allowance amounts (BT-92) where the VAT category code (BT-151, BT-102, BT-95) is "IGIC" and the VAT rate (BT-152, BT-103, BT-96) equals the VAT category rate (BT-119).

Business terms: BG-23, BT-92, BT-95, BT-96, BT-99, BT-102, BT-103, BT-116, BT-118, BT-119, BT-131, BT-151, BT-152

Where this rule applies