# BR-AG-05 IPSI line VAT rate must be zero or greater

In an Invoice line (BG-25) where the Invoiced item VAT category code (BT-151) is "IPSI" the Invoiced item VAT rate (BT-152) shall be 0 (zero) or greater than zero.

## Problem Description

> **ERROR**: EN 16931 rule for IGIC/IPSI (Canary Islands, Ceuta, Melilla)

## Context and Significance

The IPSI category (the indirect tax of Ceuta and Melilla) comes from the updated EN16931 code lists supported by the current XRechnung 3.0.2 rulepack; unlike VAT-free categories it can carry a positive rate, but the rate must never be negative.

## Solution

Set BT-152 (cbc:Percent) to a non-negative value such as 10.00; never use a negative rate for a "M" (IPSI) line.

- [Validate XML](/en/xrechnung-validator?source=resource&rule=BR-AG-05)
- [Convert invoice](/en/pdf-to-xrechnung?source=resource&rule=BR-AG-05)

## Valid Examples

- Line with category "M" (IPSI) and BT-152 = 10.00
- Line with category "M" (IPSI) and BT-152 = 0

## Invalid Examples

- Line with category "M" (IPSI) and BT-152 = -10.00

## Code Examples

### Valid XML
```
<cac:ClassifiedTaxCategory>
  <cbc:ID>M</cbc:ID>
  <cbc:Percent>10.00</cbc:Percent>
  <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:ClassifiedTaxCategory>
```

### Invalid XML
```
<cac:ClassifiedTaxCategory>
  <cbc:ID>M</cbc:ID>
  <cbc:Percent>-10.00</cbc:Percent>
  <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:ClassifiedTaxCategory>
```

## Affected Fields

- [BT-152 Invoiced item VAT rate](/resources/xrechnung/bt-152-invoice-line-vat-category-rate)
- [BT-151 Invoiced item VAT category code](/resources/xrechnung/bt-151-invoice-line-vat-category-code)

## Related Rules

- [BR-AG-06](/resources/kosit-validator-errors/br-ag-06-ipsi-allowance-rate-zero-or-greater)
- [BR-AG-07](/resources/kosit-validator-errors/br-ag-07-ipsi-charge-rate-zero-or-greater)

## Validation Tools

- [Official KoSIT Validator](https://github.com/itplr-kosit/validator): Run the official KoSIT validator with the XRechnung configuration to check EN 16931 and XRechnung rules.
- [Convert PDF to XRechnung](/pdf-to-xrechnung): Find validation errors during conversion and review each correction.

## Related Resources

- [Official Specification](https://docs.peppol.eu/poacc/billing/3.0/rules/ubl-tc434/)
- [Test Suite](https://github.com/itplr-kosit/xrechnung-testsuite)
- [All validation errors](/resources/kosit-validator-errors): Overview of the EN 16931, XRechnung and Peppol validation rules explained here.