VAT settlement discount basis
When a cash or settlement discount is available on a sales invoice or purchase
invoice, the VAT on the invoice can be calculated using one of these methods:
- Gross of any settlement discount. When the payment is received, a VAT adjustment is made only if a discount was taken.
- Gross of any settlement discount. When the payment is received, no VAT adjustment is made.
- Net of any settlement discount. When the payment is received, no VAT adjustment is made.
Netherlands specifics
Settlement discounts are not included in invoice amounts. When payment is received, no VAT adjustment is made, regardless of whether the discount was taken.
How Infor meets this requirement
See the tax setup in Tax User Guide.
In a Payables company record, on the Options tab, select the Tax Recovery on Discount check box. See the Financials Setup and Administration Guide.