What VAT charges should be applied to a discount.

[Jan]

If you apply a discount to an order what tax rate should be applied? I'm thinking of the kind of discount that is applied after the order is received.

Regards,

Jan

[chrisbrown]

Jan,

The VAT rate on the discount should be the same as the VAT rate on the item being discounted.

[Jan]

But the discount is applied to the whole order and an order might contain products at different VAT rates, I can't see a place where you can define the actual VAT rate to use. Actually I have just checked this out in the product and the default VAT rate offered is custom so presumably you just work it out and enter a custom rate is you have more than one rate. For me this means that to get hold of the VAT charge on the discount I have to go to the order details table find the line and then save the tax amount charged UNLESS it is stored in the order table somewhere - I'm rambling, here is a more direct question.

Is the tax rate that has been used for an adjustment stored in the order details table?

Regards,