Discounts that do not quietly break your tax
Every kind of offer a shop runs — and the tax recalculated on the discounted price, which is where a surprising number of storefronts get it wrong.
The offers merchants actually run
Codes with rules
Percentage or fixed, minimum basket, first order only, one use per customer, expiry date.
Bundles
Buy two, get the third at a discount — priced as a bundle rather than as three separate lines.
Tiered offers
Spend more, save more, shown in the cart as the customer approaches the next tier.
Campaign codes
A code per influencer or channel, so you can see which one actually sold something.
The discount changes the tax, and the order of operations matters
VAT is calculated on the amount actually payable after the discount, not before it. Software that applies the discount after the tax overstates what you owe on every discounted order — and it compounds through a White Friday week.
Here the discount is applied first and the tax follows from the discounted price, which is also how the invoice has to present it. How the invoice shows a discount →
- On every plan, including Starter
- Works across the storefront and the app
- A refund on a discounted order reverses the proportional tax
What people ask about this
Can I stop codes being stacked?
Can I run a sale without a code?
The rest of the platform
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