InvoiceGlass

Exemption reason given although VAT is charged (IGIC) · BR-AF-10

  • Severity · Error
  • Applies to · UBL / CII
  • Editorial review pending

For the category IGIC (category L), the VAT breakdown (BG-23) must not contain an exemption reason – neither as a code (BT-121) nor as text (BT-120). IGIC is a tax that is charged, so an exemption reason does not fit. If one is given anyway, the invoice is not valid. The rule ID is part of the bundled CEN 1.3.16 package.

As of

Who can correct it?

The sender can correct the invoice.

How to fix it

  1. Ask the sender for a corrected invoice without an exemption reason for this category.
  2. If you issued the invoice yourself: remove the exemption reason from IGIC entries, or check whether an exempt category was actually intended.

Rule text and source

Paraphrase · The VAT breakdown for category L (IGIC) must omit both the exemption reason text and its code. This rule ID is part of the CEN 1.3.16 package bundled by KoSIT.

Message to the sender

Subject: Invoice {invoiceNumber} – exemption reason does not match VAT category

Hello,

Thank you for your invoice {invoiceNumber} dated {issueDate}. The VAT breakdown gives a VAT exemption reason for the IGIC category (rule BR-AF-10). No exemption reason may be stated for this category. Could you please check which category applies and send us a corrected invoice?

Kind regards

Example

The category L breakdown mistakenly copies an exemption reason code from a template. The tax treatment is confirmed. The correction omits the code.

Related rules

Business terms

BG-23

Rule versions

CEN · EN 16931 (KoSIT) 1.3.16

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