Indirect Tax Early Settlement discount/PPD calculations of VAT on invoices...

Hi,

Self-studying and just need a second head on this...

Am I right in thinking that since 2015 that where an early settlement discount is offered VAT is calculated and displayed on an invoice on just the amount after any trade discount?

And where terms of early settlement are stated/understood between supplier and customer the customer calculates the early settlement discount and makes payment accordingly?

Or is it still done the where trade discount is deducted, then early settlement is calculated, VAT is calculated from the sum with settlement discount taken off, but then this actual early settlement deduction isn't stated on the invoice and this VAT figure is applied to the sum after the trade discount is taken...

Any help would be great. Exam on Friday :anguished:

Cheers

Steve

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Answers

  • SteveMerrifield
    SteveMerrifield Registered Posts: 4
    Hi Carole,

    Thanks for taking the time to answer my question this was helpful--as was all the reading around I did in the night!

    Thanks for the luck--I'll take it.

    Cheers

    Steve :+1:

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