BR-FXEXT-Z-01: Match category Z with the VAT breakdown

What it means

The CII test compares Z in header ApplicableTradeTax entries (BG-23, BT-118) with Z in selected line taxes (BG-25, BT-151), CategoryTradeTax entries for discounts and charges (BG-20, BG-21, BT-95, BT-102), and AppliedTradeTax entries for logistics service charges (BG-X-42, BT-X-273). Both sides must contain Z, or neither side may contain it. Multiple Z breakdown entries are allowed. CategoryTradeTax and AppliedTradeTax are searched throughout the document. The subtype filter (BT-X-8) checks LineStatusReasonCode beneath SpecifiedLineTradeSettlement, rather than beneath the parent line, so a non-DETAIL subtype on the parent does not by itself exclude that line.

Why it matters

The breakdown must reflect the categories found in the entries this test selects. The test also fails when the breakdown contains Z but none of those source entries uses Z; it does not check the taxable amounts or VAT amounts.

How to fix it

Compare the category codes in your structured VAT breakdown with those on the selected lines, discounts, charges and logistics service charges. If a correctly categorised source uses Z, include at least one Z breakdown entry. If only the breakdown uses Z, correct its category or remove the entry if it has no matching source. Check the XPath location before assuming that a non-DETAIL line is excluded. Regenerate and recheck your file.

The rule as published

An Invoice that contains an Invoice line (BG-25) where the "Subtype of invoice item" (BT-X-8) has the value "DETAIL" or is not specified, a Document level allowance (BG-20) or a Document level charge or tax (BG-21) or a Logistics Service Charge ( BG-X-42) where the VAT category code (BT-151, BT-95, BT-102, or BT-X-273) is “Z” ("Zero Rated") shall contain in the VAT breakdown (BG-23) at least one VAT category code (BT-118) equal with “Z” ("Zero Rated").

Business terms: BG-20, BG-21, BG-23, BG-25, BT-95, BT-102, BT-118, BT-151

Where this rule applies