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VAT invoice question

Formosa · 2024-03-12 17:07:45

If I make a supply that is going to change from VAT exempt to chargeable and I want to absorb some of the VAT myself (for competitive reasons) Using simple numbers (say VAT is 20%) Sale is net €10,000 VAT €2,000 TOTAL €12,000 I will only charge my customer half the VAT and absorb half myself. Taxman still gets €2,000…

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12-03-2024 6:07pm

#1

Formosa

Registered Users Posts: 487 ✭✭

Join Date: April 2008

Posts: 448

If I make a supply that is going to change from VAT exempt to chargeable and I want to absorb some of the VAT myself (for competitive reasons)
Using simple numbers (say VAT is 20%)

Sale is net €10,000
VAT €2,000
TOTAL €12,000

I will only charge my customer half the VAT and absorb half myself.

Taxman still gets €2,000

Customer pays me €11,000

How do I do the invoice? Before VAT a €5,000 discount would reduce customer’s VAT to €1,000 but then I’d only get €6,000 from them (10k less 5k discount plus 20% VAT)
Can I show the discount after VAT

EG Sale 10,000
VAT 2,000
Total 12,000
Less discount 1,000
Payable 11,000

0

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#2 12-03-2024 6:23pm
plhealy2000

Registered Users Posts: 87 ✭✭

Join Date: May 2007

Posts: 85

Gross sale is 11000
VAT 1833
Net for you 9167
Reduction in overall price from 12k to 11k reduces the amount due to Revenue.

1