Settlement discount and VAT?

Could anyone tell me what order settlement (cash) discount, trade discount and VAT are calculated?

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2 Responses to “Settlement discount and VAT?”

  1. ??? says:

    Trade discount then cash discount.

    VAT is based on the final figure.

  2. Peter The Piper says:

    Call a discount whatever you like. VAT is based on the net figure.

    To confuse this theory, some company’s print an invoice, offering a settlement discount, of (say) 5%
    and then calculating the VAT ‘presuming’ you have taken the settlement. I really don’t know how they get away with this as ‘technically’ if you don’t take the discount….you havn’t paid the full 20 (or whatever) % vat rate.
    Maybe someone can answer that?

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