VAT & Discount/Deductions (Inquiry & Suggestion)

1

Hello Managers,
Thanks for the great effort done with the software
I’ve an inquiry /issue
is there a way to apply the tax to the net amount after discounts/deductions
in wholesale some times “deal Prices”/ special discount/incentives are granted which is not really a discount per item on the other hand tax usually VAT is calculated per line
is there a way to get through with out harming VAT calculations and Reporting since these special discounts/incentives are reported differently
also , is there a plan to add some kind of modules/method to calculate target sales incentives for example a plan is set for a sector/div as follows:
0-70k = 1% dis
70-100k= 2% etc

Thanks for taking the time to read and help

2

Hello,

If you don’t want your discounts to affect the tax calculations, you need to record your discount as a separate line with a zero rated tax code.

1 Like
3

Is that legal?

2 Likes
4

If the discount is shown as a line in the invoice, and the actual items being sold all have VAT applied, then also applying VAT the the discount (a negative line item) would apply VAT consistent with most jurisdictions.

If your jurisdiction has a government specified item price to which tax authority specified VAT is calculated from then enter a line item in Manage exactly as specified by your tax authority. Then add a second line for the discount your business applies for actual sales (with no or zero rate tax code). You may find using Inventory kits a convenient method of setting your business actual item sale pricing.

5

Hi, yes it’s legal in egypt to apply tax at the net amount

6

Hi, thanks for the advice I will try it
the issue is that the discount rate is variable depending on the size of the sale for each sale & customer category which makes it so complicated to use 1 absolute item/kit price that’s why I intend to apply it on the total sales amount b4 tax

7

Hi, thanks for your response
it’s actually the other wa around I want the discount to offset VAT
meaning i want vat to be calculate on the net sales after discount

8

Off course paying the government more than they should is legal

1 Like
9

That is how discounts normally function.
Have you tried the Discount feature in Manager https://www.manager.io/guides/sales-invoices

10

I 'm the per lineitem discount
Usually in Egy , VAT is calculated on the net amount after discount
my Q is when there’s a bulk amount (Deal discount) applied and it should be shown in a seperate account for reporting purposes when I plug the number , it’s in a seperate line
how to make that reduce the vat incurred on the perline item Example:
item 1 is 100EGP Vat 14% total 114 , but there’s a deal discount-account -it varies much per transaction/customer- the Deal discount is 9 EGP
Current case is : Sales 100 VAT 14 discount -9 = 9 total 105

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Optimal should be : Sales 100 Discount -9 VAT 12.74 total =103.74

11

Here see the below:
it’s a screenshot from zoho on how to handle discount & tax

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