BR-IG-07: IGIC charges need a VAT rate of 0 or more

What it means

When a charge on the whole invoice (BG-21) uses VAT category L (IGIC, BT-102), the VAT rate of the charge (BT-103) must be 0 or greater. The test reads the rate on the charge'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 charges with category IPSI, the tax used in Ceuta and Melilla.

Why it matters

The rate decides which row of the VAT breakdown the charge is added to. 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 charge, such as shipping or a handling fee, and check its tax setting. Enter the IGIC rate that applies to it, such as the general rate (7 %), or 0 if it is zero-rated. Do not leave the rate empty or negative.

The rule as published

In a Document level charge (BG-21) where the Document level charge VAT category code (BT-102) is "IGIC" the Document level charge VAT rate (BT-103) 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 charge (BG-21) where the Document level charge VAT category code (BT-102) is "IPSI" the Document level charge VAT rate (BT-103) shall be 0 (zero) or greater than zero.

Business terms: BG-21, BT-102, BT-103

Where this rule applies