Include Discount

Select the box to tax discount amounts. Clear the box to ignore discount amounts for tax purposes.

Example

For a non-inventory item with a unit price of $1,000 and sales discount of 50%, the extended price is $500. The sales tax is set at 10%.

If you select Include Discount, the sales tax will be $100. The discount amount is taxed.

If you clear Include Discount, the sales tax will be $50. The discount amount is not taxed.