# BR-AG-07 IPSI charge VAT rate must be zero or greater

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.

## Problem Description

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

## Context and Significance

This is the charge-level counterpart of BR-AG-05 and BR-AG-06 for the IPSI category (the indirect tax of Ceuta and Melilla), which comes from the updated EN16931 code lists supported by the current XRechnung 3.0.2 rulepack.

## Solution

Set BT-103 (the charge cac:TaxCategory/cbc:Percent) to a non-negative value such as 10.00; never use a negative rate.

- [Validate XML](/en/xrechnung-validator?source=resource&rule=BR-AG-07)
- [Convert invoice](/en/pdf-to-xrechnung?source=resource&rule=BR-AG-07)

## Valid Examples

- Document level charge with category "M" (IPSI) and BT-103 = 10.00

## Invalid Examples

- Document level charge with category "M" (IPSI) and BT-103 = -10.00

## Code Examples

### Valid XML
```
<cac:AllowanceCharge>
  <cbc:ChargeIndicator>true</cbc:ChargeIndicator>
  <cac:TaxCategory>
    <cbc:ID>M</cbc:ID>
    <cbc:Percent>10.00</cbc:Percent>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:TaxCategory>
</cac:AllowanceCharge>
```

### Invalid XML
```
<cac:AllowanceCharge>
  <cbc:ChargeIndicator>true</cbc:ChargeIndicator>
  <cac:TaxCategory>
    <cbc:ID>M</cbc:ID>
    <cbc:Percent>-10.00</cbc:Percent>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:TaxCategory>
</cac:AllowanceCharge>
```

## Affected Fields

- [BT-103 Document level charge VAT rate](/resources/xrechnung/bt-103-document-level-charge-vat-rate)
- [BT-102 Document level charge VAT category code](/resources/xrechnung/bt-102-document-level-charge-vat-category-code)

## Related Rules

- [BR-AG-05](/resources/kosit-validator-errors/br-ag-05-ipsi-line-rate-zero-or-greater)
- [BR-AG-06](/resources/kosit-validator-errors/br-ag-06-ipsi-allowance-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.