I have a client that has received some money off a van that was purchased for the business. This is not taken account for on the VAT invoice from the car dealer. Do I have to post a dummy credit and take in to account the VAT on this 50/50 goodwill discount?
A trade discount? Early settlement discount? Not sure if I've read your question properly. VAT now is calculated on the undiscounted price if a settlement discount is offered. As I say I've probably misunderstood your question so you'll probably need to ignore me :)
__________________
Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
Hi
I think I might be mis-understanding the Q too. I just thought the dealer had issued the invoice incorrectly (Ive never seen settlement discounts for vehicle purchases, nor 'goodwill discount' in that there trade). Can you provide some more info, or perhaps a copy of the invoice with identifying features scrubbed out?
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
