> ## Documentation Index
> Fetch the complete documentation index at: https://q.odontox.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Discounts & Taxes

> Configure per-item discounts, clinic-wide VAT rates, Pakistan NTN compliance, and auto-apply tax settings so invoices and quotations calculate totals correctly.

# Discounts & Taxes

The platform gives you fine-grained control over discounts and tax calculations. Discounts are applied per line item on invoices and quotations, while taxes are configured once at the clinic level and applied automatically to every financial document.

***

## Discounts

### How discounts work

Discounts in the platform are applied at the **line-item level** — each line item on an invoice or quotation can have its own discount. There is no separate "invoice-level discount" field; instead, the total discount shown on the document is the sum of all individual line-item discounts.

### Discount types

<CardGroup cols={2}>
  <Card title="Percentage discount" icon="percent">
    A percentage off the line item's total (unit price x quantity). For example, 10% off a line item totaling PKR 5,000 gives a discount of PKR 500.
  </Card>

  <Card title="Fixed discount" icon="minus">
    A flat amount deducted from the line item's total. For example, PKR 200 off regardless of the line item quantity or price.
  </Card>
</CardGroup>

### Applying a discount

When creating or editing an invoice or quotation:

1. Click the discount option on the line item you want to discount.
2. Choose **Percentage** or **Fixed**.
3. Enter the discount value.
4. The line item total updates immediately to reflect the discounted amount.

<Tip>
  To offer a blanket discount on the entire document, apply the same percentage discount to every line item. This achieves the same effect as an invoice-level discount while keeping the per-item audit trail.
</Tip>

### Where discounts appear

| Document              | Discount shown?                                                 |
| --------------------- | --------------------------------------------------------------- |
| Invoice (on screen)   | Per-item and total discount                                     |
| Invoice PDF           | Per-item breakdown and total discount                           |
| Quotation (on screen) | Per-item and total discount                                     |
| Quotation PDF         | Per-item breakdown and total discount                           |
| Receipt PDF           | Discounts from the original invoice are reflected in line items |

***

## Taxes

### Configuring your VAT rate

Tax settings are configured at the clinic level and apply to all financial documents.

<Steps>
  ### Open tax settings

  Navigate to **Clinic Settings > Document Settings > Tax**.

  ### Enter your VAT rate

  Set the VAT rate as a percentage (e.g., `17` for 17% VAT). This rate will be used in all tax calculations.

  ### Enter your NTN (optional)

  If your clinic is registered for tax purposes, enter your **National Tax Number (NTN)**. This number appears on invoices and quotation PDFs for compliance.

  ### Enable auto-apply

  Toggle the **Auto-apply tax** switch to control whether VAT is automatically calculated on every new invoice and quotation.

  * **Enabled** — VAT is calculated and added automatically whenever you create a new invoice or quotation.
  * **Disabled** — invoices and quotations are created without tax. You can still apply tax manually on individual documents if needed.

  ### Save

  Click **Save** to apply your tax settings.
</Steps>

<Note>
  **Admin only** — only admins can configure tax settings. All billing staff (admins, doctors, and receptionists with billing permission) can see the applied tax amounts on documents they create or view.
</Note>

***

### Tax calculation formula

Tax is calculated after discounts are applied:

```
Tax = (Subtotal - Total Discount) x VAT Rate / 100
```

For example, if your subtotal is PKR 10,000, total discounts are PKR 1,000, and your VAT rate is 17%:

```
Tax = (10,000 - 1,000) x 17 / 100 = PKR 1,530
```

The final total becomes:

```
Total = Subtotal - Total Discount + Tax
Total = 10,000 - 1,000 + 1,530 = PKR 10,530
```

***

### Where tax appears

Tax is shown as a separate line on all financial documents:

| Surface               | Tax display                                                     |
| --------------------- | --------------------------------------------------------------- |
| Invoice (on screen)   | Separate tax line below subtotal and discount                   |
| Invoice PDF           | Itemized: subtotal, discount, tax, total                        |
| Quotation (on screen) | Separate tax line below subtotal and discount                   |
| Quotation PDF         | Itemized: subtotal, discount, tax, total                        |
| Receipt PDF           | Tax from the original invoice is reflected                      |
| Installment plan      | Tax is included in the grand total and distributed across terms |

***

## Discounts and taxes together

When both discounts and taxes apply, the calculation order is:

<Steps>
  ### Calculate subtotal

  Sum of all line items (quantity x unit price for each).

  ### Apply discounts

  Subtract each line item's discount to get the discounted subtotal.

  ### Calculate tax

  Apply the VAT rate to the discounted subtotal.

  ### Calculate total

  Discounted subtotal plus tax equals the final amount.
</Steps>

Here is a complete example:

|                                   | Amount         |
| --------------------------------- | -------------- |
| Line item 1: 2x PKR 3,000         | PKR 6,000      |
| Line item 2: 1x PKR 4,000         | PKR 4,000      |
| **Subtotal**                      | **PKR 10,000** |
| Discount on item 1: 10%           | -PKR 600       |
| Discount on item 2: PKR 500 fixed | -PKR 500       |
| **Total Discount**                | **-PKR 1,100** |
| **Discounted Subtotal**           | **PKR 8,900**  |
| Tax (17% VAT)                     | +PKR 1,513     |
| **Grand Total**                   | **PKR 10,413** |

***

<AccordionGroup>
  <Accordion title="Can I have different tax rates for different services?">
    The platform applies a single VAT rate to the entire document. If you need to handle different tax rates, you would need to create separate invoices for differently-taxed services.
  </Accordion>

  <Accordion title="Can I make an invoice tax-exempt?">
    Yes. Even with auto-apply enabled, you can remove the tax from an individual invoice or quotation before saving it. This is useful for tax-exempt patients or services.
  </Accordion>

  <Accordion title="Does changing the VAT rate affect existing documents?">
    No. Changing the VAT rate only affects documents created after the change. Existing invoices and quotations retain the tax amount that was calculated at the time of creation.
  </Accordion>

  <Accordion title="Where does my NTN appear?">
    Your National Tax Number appears in the header or footer of invoice and quotation PDFs, depending on your clinic's branding template. It is not shown on screen views.
  </Accordion>
</AccordionGroup>

***

## Related articles

* [Invoices](/finance/invoices) — discounts and taxes on patient invoices
* [Quotations](/finance/quotations) — discounts and taxes on treatment quotations
* [Installment Plans](/finance/installment-plans) — tax is included in installment calculations
* [Receipts & Payments](/finance/receipts) — receipts reflect the tax from the original invoice
* [Financial Reports](/finance/reports) — tax amounts are tracked in revenue calculations