Reference

BR-G-07 Export charge VAT rate must be zero

In a document level charge (BG-21) where the document level charge VAT category code (BT-102) is "Export outside the EU" (G), the document level charge VAT rate (BT-103) shall be 0 (zero).

A document level charge with category G, such as freight to a non-EU destination, belongs to the export and carries no VAT, so its rate must be 0. In practice, the error occurs when a shipping charge is added with the domestic rate while the category is set to G.

Solution

Set the charge TaxCategory/cbc:Percent (BT-103) to 0 whenever the document level charge category is G.

Quick actions

Validate XML Convert invoice

Valid Examples

Document charge with BT-102 = G and BT-103 = 0

Invalid Examples

Document charge with BT-102 = G but BT-103 = 19

Code Examples

Valid XML

<cac:AllowanceCharge>
  <cbc:ChargeIndicator>true</cbc:ChargeIndicator>
  <cac:TaxCategory>
    <cbc:ID>G</cbc:ID>
    <cbc:Percent>0</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>G</cbc:ID>
    <cbc:Percent>19</cbc:Percent>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:TaxCategory>
</cac:AllowanceCharge>