VAT and Discounts

When discounts are applied to an order, the VAT is recalculated to reflect the reduced taxable amount.

Case 1: Discount Does Not Exceed Food and Drinks Value

Calculation Formula

[ ( Food and Drink Total - Discount Amount ) ÷ Food and Drink Total ] × Original VAT if the order is not discounted

Example

When an order is not discounted:

• Food and Drink Total: €19.20
• VAT: €2.43

When an order is discounted:

• Food and Drink Total: €19.20
• Discount Amount: €3.87
• VAT: €1.94

  • [ ( €19.20 - €3.87 ) ÷ €19.20 ] × €2.43

Case 2: Discount Exceeds Food and Drinks Value

Rule

When the discount is greater than the food and drink value, it is applied to food and drinks first. Once the discount fully covers the food and drink total, no taxable amount remains.

Example

• Food & Drink Total: €19.20
• Delivery Charge: €6.00
• Discount: €20.00
• VAT: €0.00