BR-FXEXT-S-09B: Standard-rate VAT amount must equal taxable amount times the rate

What it means

For each VAT rate (BT-119) used with category S (standard rate), the VAT amount of that row in the VAT breakdown (BG-23, BT-117) must equal the taxable amount (BT-116) multiplied by the rate and divided by 100. The difference may be no more than 0.01 for each line (BT-131), discount on the whole invoice (BT-92), charge on the whole invoice (BT-99) or logistics service fee (BT-X-272) at that rate, which allows for rounding on single lines. The rule text gives two ways of counting those items, a plain one and one that also takes the exemption reasons (BT-120, BT-121) into account, and says that in the end only the second will be required. Only ordinary lines count: subtype DETAIL (BT-X-8) or no subtype.

Why it matters

The VAT amount is what the buyer reclaims and the tax authority expects to be paid. If it does not follow from the taxable amount and the rate, the VAT total and the amount due are in doubt and the invoice is rejected.

How to fix it

Look at the standard-rate row in the VAT summary. Multiply its taxable amount by the rate, divide by 100 and compare the result with the VAT amount shown. Correct whichever figure is wrong. The usual causes are a rate typed wrongly in the row, a taxable amount that already includes VAT, or a VAT amount entered by hand instead of calculated.

The rule as published

For each different value of VAT rate (BT-119) where the VAT category code (BT-118) is equal to “S” ("Standard rated"), Absolute Value of (VAT category tax amount (BT-117) - VAT category taxable amount (BT-116) multiplied by the VAT category rate (BT-119)/100) <= 0,01 * ((Number of line net amounts (BT-131) + Number of Document level allowance amounts (BT-92) + Number of Document level allowance amounts (BT-99) + Number of Logistics Service fee amounts (BT-X-272)), where the VAT category code (BT-151, BT-95, BT-102, BT-X-273) is " Standard rated " (S), and the VAT rate (BT-152, BT-96, BT-103, BT-X-274) equals the VAT category rate (BT-119), and only for lines where the "Subtype of invoice line item" (EXT-FR-FE-163 / BT-X-8) has the value "DETAIL" or is not specified or the same rule but also taking into account the exemption reasons in Text (BT-120) and Code (BT-121) in BG-23 and the exemption reasons on each line (BT-X-96 / BT-X-97), on Document level Allowances (BT-173 / BT-174) and on Document Level Charges (BT-175 / BT-176) and on Service logistic charges (BT-X-591 / BT-X-592). One of the two rules must be followed, bearing in mind that ultimately only the second one will have to be followed.

Business terms: BG-23, BT-92, BT-95, BT-96, BT-99, BT-102, BT-103, BT-116, BT-117, BT-118, BT-119, BT-120, BT-121, BT-131, BT-151, BT-152, BT-173, BT-174, BT-175, BT-176

Where this rule applies