[Question] Vat on price won on the customer invoice?

[helperofmen]

Good Day,

I trust that somebody can assist, please.

A customer won a price, the value of the price is used to reduce the value of the purchase on the invoice for the customer.
Is this treated the same as a voucher?
The purchase value on the sale invoice is reduced with the value of the price but no vat is calculated on the price value?
Is it better to process the price value against discount allowed or is it necessary to create a different ledger account?

[adrianh]

Prize?

[Dave A]

Terminology matters.

With a discount, this would affect VAT.
With a shopping voucher, the voucher helps pay towards the cost of the item, but the price of the item and the output VAT remains unchanged.

[helperofmen]

The value of the price is only R500

[helperofmen]

This was a price that a customer won online.
The customer want to use the value of the price to reduce whatever is purchased in the shop.
My understanding is that this will fall into the same category as a voucher.

[Dave A]

Prize?

Sounds like it