BR-AG-08: IPSI taxable amount must equal lines plus charges minus discounts

What it means

For each IPSI rate (BT-119) in the VAT breakdown (BG-23), the taxable amount (BT-116) must equal the sum of the line net amounts (BT-131) with the category IPSI and that rate, plus the whole-invoice charges (BT-99) with that category and rate, minus the whole-invoice discounts (BT-92) with that category and rate. IPSI is code M in the file, the tax of Ceuta and Melilla. The check tolerates a small rounding difference of less than 1 in the invoice currency.

Why it matters

The taxable amount is the base the VAT is calculated on. If it does not match the lines, the VAT is built on the wrong base. The recipient cannot book the invoice with confidence, so it is rejected.

How to fix it

Group your IPSI lines, charges and discounts by VAT rate. For each rate, add up the line net amounts and the charges, subtract the discounts, and use that figure as the taxable amount of the breakdown row for that rate. Also check that every IPSI line, charge and discount carries the same rate as the row it belongs to, because they are matched by category and rate.

The rule as published

For each different value of VAT category rate (BT-119) where the VAT category code (BT-118) is "IPSI", 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 "IPSI" 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