Why is the discount line being taxed on my invoices in Xero?


Latest update: - Lucia Palozzi

Question

The discount applied on my register closures/sales is having tax applied to it in Xero. 


Setup

  • Vend for Mac or PC
  • Xero integration

Answer

Tax will be applied to a discount line if the account you use for discounts in Xero has a tax rate applied in its settings.  

Additional Information

  • You can check which account is mapped to your Vend discounts under Setup>Add-ons>Xero
  • You can see the tax rate on each account in Xero under Accounting>Chart of Accounts