BR-B-02: Split payment cannot be mixed with standard rated VAT

What it means

The invoice uses the VAT category Split payment (B) on a line, a discount or charge on the whole invoice, or in the VAT breakdown (BT-151, BT-95, BT-102, BT-118), and also uses Standard rated (S) in those places. The two cannot be on the same invoice. This rule says nothing about other categories.

Why it matters

On a split payment invoice the VAT goes to the tax authority rather than to the seller. Standard rated VAT is paid to the seller as usual. With both on one invoice the recipient cannot tell how the VAT should be settled, so the invoice is rejected.

How to fix it

Look at the VAT category on each line and on any whole-invoice discount or charge. Lines that fall under split payment keep category B, and anything standard rated moves to a separate invoice. If standard rated is there by mistake, for example because it is the default in your software, change it to B.

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, BT-118 or BT-102) is “Split payment" shall not contain 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, BT-118 or BT-102) is “Standard rated”.

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

Where this rule applies