Vat on net sale
This query is : Resolved
25 May 2015
If I am giving discount on sales @20% then on what amount VAT should charged? On net amount after deducting Discount?
25 May 2015
Trade Discount(TD) are eligible for deduction from the sale price for the purpose of charging vat.
TD shown in the invoice then VAt will be chargeable on net amount after deducting discount.
Please note that trade discounts are discounts allowed in the trade (by whatever name such discount is described) should be allowed to be deducted from the sale price having regard to the nature of the goods, if established under agreements or under terms of sale or by established practice, the allowance and the nature of the discount being known at or prior to the removal of the goods.
TD shown in the invoice then VAt will be chargeable on net amount after deducting discount.
Please note that trade discounts are discounts allowed in the trade (by whatever name such discount is described) should be allowed to be deducted from the sale price having regard to the nature of the goods, if established under agreements or under terms of sale or by established practice, the allowance and the nature of the discount being known at or prior to the removal of the goods.
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