How Are VAT-Inclusive Discounts Handled?

susanemelia

Hi everyone, Big e-commerce sites show discounts on the final TTC price, but EU rules say discounts should apply before VAT (HT).

If an item is €50 TTC and shows €10 off, how is this compliant? Is it just display logic or is VAT recalculated behind the scenes?

jamies_taylor

They show the discount on the TTC price for simplicity, but VAT is recalculated on the reduced HT price. The invoice will show the correct HT and VAT after the discount.