Trade Discounts and VAT 1. Trade Discounts and VAT Even when an item benefits from a discount, VAT is calculated on the amount after the discount. This means that the taxable base is reduced, but VAT remains applicable. For example, if a product costs 100 D with a 19% VAT rate, and a 50% discount is applied, the base becomes 50 D, and the VAT is 9.50 D. The discount does not cancel the VAT; it simply reduces the base. 2. Why Discounted Items Are Still Subject to VAT VAT is a tax on actual value added, i.e., on the amount actually paid by the customer. Even if a product is sold at half price, there is still a commercial transaction, and therefore added value. VAT is therefore calculated on the final price paid, not on the initial price before the discount. This ensures tax fairness and prevents abuse. 3. Transparency in invoices Some invoices only indicate the total VAT amount, without detailing the taxable base. This can complicate verification, especially when there are multiple VAT rates (e.g., 7% and 19%). In these cases, it is difficult to reconstruct the base without additional information. Ideally, businesses should provide details for each rate applied.