Is there anyone else in the UK or EU that has had an invoice with free credits applied?
I have an invoice where the service charge is $8.00. I then have $4.03 of free credit applied, giving a taxable amount of $3.97. Then VAT is applied at a rate of 20% on $3.97 = $0.79. So Far so good.
However, now the VAT is added to the original $8.00, giving an invoice total of $8.79!
Surely the tax should be added to the taxable amount giving a total of $3.97+$0.79 = $4.76?