Discounts and taxes are calculated per line item
Discounts and taxes are always calculated per individual line item – not based on the total sum of all items. This means: for each invoice line item, the tax is first deducted, and then the discount is calculated. Only after that are the line items added together to form the total.
Rounding differences with multiple line items or discounts
Since each line item is rounded individually, minor discrepancies in the final total may occur when there are multiple line items and/or discounts. These rounding differences are system-inherent and correct.
Sample Invoice
INDIVIDUAL PRICE GROSS | TAX 7 % (÷ 1.07) | NET PRICE | DISOCUNT 13 % (or x 0.87) | NET AFTER DISCOUNT | QUANTITY | TOTAL NET |
|---|---|---|---|---|---|---|
4.99 € | 0.33 € | 4.66 € | 0.61 € | 4.06 € | 9 items | 36.52 € |
8.99 € | 0.59 € | 8.40 € | 1.09 € | 7.31 € | 1 item | 7.31 € |
Tax in total: 3.56 € | Discount in total: 6.58 € | 43.83 € | ||||
+ 7 % Tax in total | 3.56 € | |||||
= Total gross | 47.39 € | |||||
Tax is not calculated twice in the total
Tax is determined exclusively at the line item level. In the total, the already-calculated tax amount is simply carried over – it is not recalculated there. This ensures that no tax is applied twice in the final total.
Verification: individual purchase vs. combined purchase
As a consistency check: if a customer purchases each line item individually, the resulting values must be identical to those of a combined purchase of all items in a single order. If the results differ, a calculation error is present.