Calculate the tax applied to a discounted price after the markdown is taken.
| Item | Formula / Rule | Source / Standard |
|---|---|---|
| Discount treatment | When the discount appears in the amount column of the same invoice, tax applies to the net amount | PRC VAT Interim Regulations, Art. 6 |
| Separate credit note | A separately issued credit note cannot reduce the sales amount of the period | PRC VAT Interim Regulations, Art. 6 |
| Inclusive conversion | For discounts quoted tax-inclusive, first divide by (1 + rate) and then apply the rate | PRC VAT Interim Regulations, Art. 5 |