Reference

BR-IC-07 Intra-community charge VAT rate must be zero

In a document level charge (BG-21) whose document level charge VAT category code (BT-102) is "Intra-community supply", the document level charge VAT rate (BT-103) shall be 0.

A document level charge with category K, such as freight, increases the taxable base of the intra-community supply, so it carries the same rate of 0. In practice, the error occurs when a shipping charge keeps the domestic rate while its category is set to K.

Solution

Set cbc:Percent to 0 in the document level charge TaxCategory whenever cbc:ID is K.

Quick actions

Validate XML Convert invoice

Valid Examples

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

Invalid Examples

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

Code Examples

Valid XML

<cac:AllowanceCharge>
  <cbc:ChargeIndicator>true</cbc:ChargeIndicator>
  <cbc:Amount currencyID="EUR">25.00</cbc:Amount>
  <cac:TaxCategory>
    <cbc:ID>K</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>
  <cbc:Amount currencyID="EUR">25.00</cbc:Amount>
  <cac:TaxCategory>
    <cbc:ID>K</cbc:ID>
    <cbc:Percent>19</cbc:Percent>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:TaxCategory>
</cac:AllowanceCharge>