What could be easy then apply a 20% discount to your product in the e-shop! Nothing!
Ok, lets check it out from prospective of accounting. We have 1 product, that cost € 79.50. Let’s look at the order with 20% discount and Dutch VAT
| Products | Model | Price (ex) | Tax | Price (inc) | Total | ||||||||||||||
| 1 x | Your product | MODEL-1 | € 66.81 | 19% | € 79.50 | € 79.50 | |||||||||||||
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Ok, the amount you need to book in your accounting is €53,45 you always work without VAT with your accountant. Which is a good deal because normal price €66,81
So, if you ask your accountant, how much discount you’ve got (if you’re a reseller, it means how much margin did you get on reselling this product – the answer would be € 66,81 – €53,45 = € 13,36
But I’ve just seen the discount being €15,90 Who’ve stolen €2,54!!!
I hope I’ve got everybody lost by now. 
So it’s not very easy to apply the discount. If you want to do it correctly, you should try to follow the rules:
- do ALL operations such as discounts only with amounts BEFORE applying VAT.
- Application of VAT must be always the last step in your operations.
So, that’s how the information order above should look like
| Products | Model | Price (ex) | Total | ||||||||||||||||
| 1 x | Your product | MODEL-1 | € 66.81 | € 66.81 | |||||||||||||||
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Now I ope it’s a bit clearer.
