VAT (Value Added Taxes) for EU to be calculated after discounts

sha77

sha77

Member
As far as I understand, the VAT should be calculated after any (coupon) discounts. For example, if the product selling price is 100€, but I give a 90% discount, a 24% VAT should be 2.4€, not 24€. Right now, it seems to be calculated the wrong way.

Perhaps I'm missing something, but please check.
 
Kimberlibre

Kimberlibre

Member
You don't seem to be the only one who's missing something in this. These taxes and rebates have always given me a strange feeling. Even so, I manage to find more information at youngandthrifty.ca that has an important impact on my finances. You know, I've been trying to achieve financial independence for a long time now, including for my family in the future. It draws me to such sources where I can find interesting thoughts and ideas to help my business. This way, you can save time on finding motivation because you can find it all in one place.
 
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AlexDriple

AlexDriple

New Member
I had a similar issue with my small business last year, and it turned out to be a simple fix. You're right, the VAT should be calculated after applying any discounts. So in your case, with a 90% discount on a 100€ product, the 24% VAT should indeed be 2.4€. I faced the same confusion until I started using more reliable tools. I found https://thevatconsultancy.com/erp-systems-tax-engines/ really helpful. They offer great solutions that make sure taxes are calculated correctly. Once I switched, it was smooth sailing.
 
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