BR-AG-07:IPSI document level charge VAT rate must be 0% or positive
Fix: Invoice Navigator automatically fixes this issue by correcting the `cac:AllowanceCharge` element in your Invoice (BR-AG-07). Upload your invoice to fix this automatically.
When a document level charge uses the IPSI VAT category (M for Ceuta/Melilla indirect tax), the VAT rate must be 0 or greater than zero.
Engine Classification
Set VAT rate to 0% if negative for IPSI document-level charges per EN16931 BR-AG-07
Confidence: 92% · Applied automatically in pipeline
What is BR-AG-07?
BR-AG-07 is a fatal validation rule defined in the EN 16931 specification. It validates the Percent element under TaxCategory in the UBL invoice XML.
When this rule fires, the invoice is rejected by Peppol access points and never reaches the buyer.
Target path: //cac:AllowanceCharge[cbc:ChargeIndicator='true']/cac:TaxCategory[cbc:ID='M']/cbc:Percent
Why This Error Matters
Invoice will be rejected. IPSI (Ceuta/Melilla indirect tax) transactions must follow specific rules for Spanish territory tax compliance.
BR-AG-07 is a hard failure — the invoice must be corrected and re-sent before it can reach the recipient.
Invoice Navigator can automatically correct this error in your pipeline. The fix is applied with full audit evidence, so your compliance trail remains intact.
Validator Behavior
- ·Causes invoice rejection
- ·Error returned: BR-AG-07
- ·Specification: EN 16931
How to Fix It
Identify IPSI charges
Check VAT rate values
Fix negative rates
Validate the result
Before / After
<Invoice> <cac:AllowanceCharge>INVALID_CODE</cac:AllowanceCharge> </Invoice>
<Invoice> <cac:AllowanceCharge>VALID_CODE</cac:AllowanceCharge> </Invoice>
Technical Reference
//cac:AllowanceCharge[cbc:ChargeIndicator='true']/cac:TaxCategory[cbc:ID='M']/cbc:PercentCommon Causes
- ·IPSI document charge has negative VAT rate
- ·Incorrect rate on Ceuta/Melilla surcharge
- ·IPSI charge percentage field invalid
- ·Rate calculation error for IPSI charge
- ·Data entry error on IPSI charge rate
Seeing this in production? The API handles BR-AG-07 automatically. See the fix response →
Frequently Asked Questions
When a document level charge uses the IPSI VAT category (M for Ceuta/Melilla indirect tax), the VAT rate must be 0 or greater than zero.
Invoice Navigator automatically fixes this issue by correcting the `cac:AllowanceCharge` element in your Invoice (BR-AG-07). You can also use Invoice Navigator's compliance engine to correct this automatically in your pipeline.
Yes, BR-AG-07 is a critical error that will cause invoice rejection. It must be fixed before submission.
Many instances of BR-AG-07 can be automatically corrected using Invoice Navigator's compliance engine. The fix is applied in your pipeline with full audit evidence.
Related Errors
Related Content
Last updated: 27 February 2026
Validate your invoice
Drop your XML here to check for BR-AG-07
Auto-fix BR-AG-07 in seconds
Upload your invoice and we fix this error automatically. Financial fields are never touched.