THIS IS A TEST INSTANCE. ALL YOUR CHANGES WILL BE LOST!!!!
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Discounts applied per line
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This is valid but unrelated to VAT, since discount must be calculated on prices without VAT |
Currently OFbiz applies global discount on invoice level. This is not always valid for VAT depending on countries.
For instance it's OK for UK, and maybe Germany, but not in France and Italy where they should be grouped by VAT rates.
Also a discount should always be calculated on the price without VAT.
For instance 100 x 19.6% = 119.60 (incl 19.60 VAT) -10% discount (11.96) = 107.64. VAT was calculated on 100 euros (19.60)
If you calculate 100 -10% = 90 x 19.6% (incl 17.64 VAT) => 90 + 17.64 = 107.64. VAT was calculated on 90 euros (17.64)
The price for the customer is the same. But the VAT to be paid to the tax authority is wrong in the 1st case. It's also a problem if your client want to recover VAT from tax authority. Another way is to calculate based on the price including VAT but to remove the non exigible part (here 19.6 - 17.64 = 1,96, ie 10% of the total VAT paid in the 1st case)
Reporting
In most countries there is need for monthly or in general periodic VAT reports with all sales and purchases.
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