Reference

BR-IC-09 Intra-community VAT amount must be zero

The VAT category tax amount (BT-117) in a VAT breakdown (BG-23) where the VAT category code (BT-118) is "Intra-community supply" shall be 0.

Because the intra-community supply is not taxed in the seller’s member state, the VAT amount of the K breakdown must be exactly 0.00; the buyer accounts for VAT on the intra-community acquisition. In practice, a VAT amount appears when the software calculates VAT on the K base with the domestic rate.

Solution

Set cbc:TaxAmount to 0.00 in the K TaxSubtotal (BG-23); the intra-community supply carries no VAT in the seller’s country.

Quick actions

Validate XML Convert invoice

Valid Examples

K breakdown with BT-116 = 1000.00 and BT-117 = 0.00

Invalid Examples

K breakdown with BT-116 = 1000.00 but BT-117 = 190.00

Code Examples

Valid XML

<cac:TaxSubtotal>
  <cbc:TaxableAmount currencyID="EUR">1000.00</cbc:TaxableAmount>
  <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
  <cac:TaxCategory>
    <cbc:ID>K</cbc:ID>
    <cbc:Percent>0</cbc:Percent>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:TaxCategory>
</cac:TaxSubtotal>

Invalid XML

<cac:TaxSubtotal>
  <cbc:TaxableAmount currencyID="EUR">1000.00</cbc:TaxableAmount>
  <cbc:TaxAmount currencyID="EUR">190.00</cbc:TaxAmount>
  <cac:TaxCategory>
    <cbc:ID>K</cbc:ID>
    <cbc:Percent>0</cbc:Percent>
    <cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
  </cac:TaxCategory>
</cac:TaxSubtotal>