Requirements

When modeling tax in VRBL, the following requirements exist:

Each line item must have one Tax Category ID in the Invoice/InvoiceLine/Item/ClassifiedTaxCategory/ID element.
Each Tax Category ID must also have an associated tax rate in the Invoice/InvoiceLine/Item/ClassifiedTaxCategory/Percent element.
Each Allowance or Charge must have one Tax Category ID in the Invoice/AllowanceCharge[ChargeIndicator='false|true']/TaxCategory/ID element.
Each Tax Category ID must also have an associated tax rate in the Invoice/AllowanceCharge[ChargeIndicator='false|true']/TaxCategory/Percent element.

Examples

Standard rate

The following example shows a standard rate of 25%:

<Invoice>
    <!-- code omitted for clarity -->
    <cac:TaxTotal>
        <cbc:TaxAmount currencyID="EUR">400.00</cbc:TaxAmount>
        <!-- First Tax Breakdown: Standard Rate 25% -->
        <cac:TaxSubtotal>
            <cbc:TaxableAmount currencyID="EUR">1000.00</cbc:TaxableAmount>
            <cbc:TaxAmount currencyID="EUR">250.00</cbc:TaxAmount>
            <cac:TaxCategory>
                <cbc:ID>S</cbc:ID>
                <cbc:Percent>25.00</cbc:Percent>
                <cac:TaxScheme>
                    <cbc:ID>VAT</cbc:ID>
                </cac:TaxScheme>
            </cac:TaxCategory>
        </cac:TaxSubtotal>
    <!-- code omitted for clarity -->
 </Invoice>

Standard rate 15%

The following example shows a standard rate of 15%:

<Invoice>
    <!-- code omitted for clarity -->
      <cac:TaxTotal>
        <cac:TaxSubtotal>
            <cbc:TaxableAmount currencyID="EUR">1000.00</cbc:TaxableAmount>
            <cbc:TaxAmount currencyID="EUR">150.00</cbc:TaxAmount>
            <cac:TaxCategory>
                <cbc:ID>S</cbc:ID>
                <cbc:Percent>15.00</cbc:Percent>
                <cac:TaxScheme>
                    <cbc:ID>VAT</cbc:ID>
                </cac:TaxScheme>
            </cac:TaxCategory>
        </cac:TaxSubtotal>
    <!-- code omitted for clarity -->
</Invoice>

Tax exemption

The following example shows a tax exemption. Note that the rate is still required even though it is zero:

<Invoice>
    <!-- code omitted for clarity -->
    <cac:TaxTotal>
        <cac:TaxSubtotal>
            <cbc:TaxableAmount currencyID="EUR">1000.00</cbc:TaxableAmount>
            <cbc:TaxAmount currencyID="EUR">0.00</cbc:TaxAmount>
            <cac:TaxCategory>
                <cbc:ID>E</cbc:ID>
                <cbc:Percent>0.00</cbc:Percent>
                <cbc:TaxExemptionReasonCode>VATEX-EU-F</cbc:TaxExemptionReasonCode>
                <cac:TaxScheme>
                    <cbc:ID>VAT</cbc:ID>
                </cac:TaxScheme>
            </cac:TaxCategory>
        </cac:TaxSubtotal
    </cac:TaxTotal>
    <!-- code omitted for clarity -->
</Invoice>

Tax calculations

You must also model the tax calculations correctly. See Modeling Tax Calculations.