BR-IP-09: IPSI VAT amount must equal taxable amount times rate

What it means

In a VAT breakdown row (BG-23) with category IPSI (BT-118), the VAT amount (BT-117) must equal the taxable amount (BT-116) multiplied by the VAT rate (BT-119). The check allows a difference of less than 1 in the invoice currency, so a failure means the figure is clearly off, not just rounded differently. The CII rule sets word this rule for IGIC, the Canary Islands general indirect tax, instead of IPSI.

Why it matters

This is the VAT the buyer books and the tax authority expects to see. If it does not follow from the base and the rate, the VAT total and the amount due cannot be trusted and the invoice is rejected.

How to fix it

Take the taxable amount of the IPSI row, multiply it by the rate, divide by 100 and round to two decimals. A taxable amount of 200.00 at a rate of 10 gives a VAT amount of 20.00. Enter that as the VAT amount of the row. If the amount looks right but the result still differs, check that the rate of the row matches the rate on the lines.

The rule as published

The VAT category tax amount (BT-117) in a VAT breakdown (BG-23) where VAT category code (BT-118) is "IPSI" shall equal the VAT category taxable amount (BT-116) multiplied by the VAT category rate (BT-119).

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

The VAT category tax amount (BT-117) in a VAT breakdown (BG-23) where VAT category code (BT-118) is "IGIC" shall equal the VAT category taxable amount (BT-116) multiplied by the VAT category rate (BT-119).

Business terms: BG-23, BT-116, BT-117, BT-118, BT-119

Where this rule applies