BR-AF-09: IGIC tax amount must be the taxable amount times the rate

What it means

In a VAT breakdown (BG-23) with the category IGIC (BT-118), the tax amount (BT-117) must equal the taxable amount (BT-116) multiplied by the rate (BT-119) and divided by 100. The check compares the amounts without their sign and allows a rounding difference of less than 1 in the invoice currency.

Why it matters

The tax amount is the figure the recipient books and the tax authority collects. If it does not follow from the taxable amount and the rate, the invoice contradicts itself, and it is rejected.

How to fix it

Recalculate the tax amount for each IGIC entry: for example, 1,000.00 at a rate of 7 gives 70.00. If the result differs from what your software shows, check that the rate in the breakdown is the rate you meant, and that the taxable amount was not changed after the tax was calculated.

The rule as published

The VAT category tax amount (BT-117) in a VAT breakdown (BG-23) where VAT category code (BT-118) is "IGIC" shall equal the VAT category taxable amount (BT-116) multiplied by the VAT category rate (BT-119).

Business terms: BG-23, BT-116, BT-117, BT-118, BT-119

Where this rule applies