BR-AG-07: An IPSI invoice charge needs a VAT rate of zero or more

What it means

On a charge on the whole invoice (BG-21), such as a shipping or handling fee, with the VAT category IPSI (BT-102), the tax of Ceuta and Melilla, the VAT rate of the charge (BT-103) must be 0 or higher. In the file this is the percentage in the charge's VAT category. A charge with no rate at all also fails, because there is nothing to compare with zero.

Why it matters

A negative rate has no meaning for VAT, and a missing rate means the tax on the charge cannot be worked out. The VAT breakdown cannot be checked against it, so the invoice is rejected.

How to fix it

On the invoice-level charge, set the VAT rate to the real IPSI percentage, normally the same rate as the goods or services it relates to, or to 0 if no tax applies. Enter it as a plain percentage, for example 10 for 10 percent, and never as a negative number. If your software left the rate empty, fill it in.

The rule as published

In a Document level charge (BG-21) where the Document level charge VAT category code (BT-102) is "IPSI" the Document level charge VAT rate (BT-103) shall be 0 (zero) or greater than zero.

Business terms: BG-21, BT-102, BT-103

Where this rule applies