BR-S-09: Standard-rate VAT is not base times rate. How to fix it

What the rule checks

The rule does the arithmetic for every group in the VAT breakdown (BG-23) with category S (standard rated): the group's tax amount (BT-117) must equal its taxable amount (BT-116) multiplied by its rate (BT-119). Groups in any other category are not checked by this rule.

Why files fail it

• The group's tax amount was not calculated from the taxable amount; it was added up from the lines, or taken as the difference between gross and net.
• Your system works with gross prices. A gross price such as 56.90 EUR cannot be split exactly at 19%: a net of 47.81 gives 9.08 tax and 56.89, a net of 47.82 gives 9.09 and 56.91. Software that holds on to the gross price has to bend either the net or the tax, and across many lines that adds up.
• The group's rate does not fit its tax amount, for example 19% stated but 7% calculated.
• The taxable amount was changed, for instance by a late discount, and the tax amount was not recalculated.

How to fix it

1. 1Calculate each group's tax once from its taxable amount: "VAT category taxable amount" (BT-116) times "VAT category rate" (BT-119) divided by a hundred gives the "VAT category tax amount" (BT-117). Check while you are there that the group's rate is the one on its lines (BT-152).
2. 2If your system works with gross prices, have it calculate the group's tax from the taxable amount rather than as gross minus net. The gross total then follows from net plus tax, and may differ from the original gross price by a cent or so.
3. 3If the report also shows BR-CO-17 and BR-CO-14, correct the group's tax amount first and then the invoice total VAT amount (BT-110), which must be the sum of all groups.
4. 4Our form has no box for the tax amount: it is calculated once per VAT group from the taxable amount and the rate.