BR-IG-06: IGIC discounts need a VAT rate of 0 or more

What it means

When a discount on the whole invoice (BG-20) uses VAT category L (IGIC, BT-95), the VAT rate of the discount (BT-96) must be 0 or greater. The test reads the rate on the discount's tax category and checks that it is at least 0, so an empty rate fails as well as a negative one. The CII rule sets run the same check for discounts with category IPSI, the tax used in Ceuta and Melilla.

Why it matters

The rate decides which row of the VAT breakdown the discount reduces. With a missing or negative rate, the taxable amounts and the VAT cannot be worked out reliably, and the invoice is rejected.

How to fix it

In your invoicing software, open the discount on the whole invoice and check its tax setting. Enter the IGIC rate that applies, which is normally the same rate as the goods or services the discount relates to, or 0 if that part is zero-rated. Do not leave the rate empty or negative.

The rule as published

In a Document level allowance (BG-20) where the Document level allowance VAT category code (BT-95) is "IGIC" the Document level allowance VAT rate (BT-96) shall be 0 (zero) or greater than zero.

Where EN 16931 (CII), XRechnung 3.0 (CII), France CTC (CII) run it, the rule reads:

In a Document level allowance (BG-20) where the Document level allowance VAT category code (BT-95) is "IPSI" the Document level allowance VAT rate (BT-96) shall be 0 (zero) or greater than zero.

Business terms: BG-20, BT-95, BT-96

Where this rule applies