# Tax for Basket with Coupon containing two different VAT rates

Imagine an online basket with 2 items in it, each with different VAT rates. A fixed amount coupon is then applied to the basket. How should the net/tax for this basket be accounted for?

Example:

``````╔══════════════╦══════╦═══════╦════════╦═══════╗
║              ║ Rate ║ Gross ║  Net   ║  Tax  ║
╠══════════════╬══════╬═══════╬════════╬═══════╣
║ Spoon        ║ 20%  ║ £10   ║ £8.33  ║ £1.67 ║
║ Carrycot     ║ 5%   ║ £10   ║ £9.52  ║ £0.48 ║
║ Total so far ║      ║ £20   ║ £17.85 ║ £2.15 ║
║ £5 Discount  ║      ║ £5    ║ ???    ║ ???   ║
║ Total        ║      ║ £15   ║ ???    ║ ???   ║
╚══════════════╩══════╩═══════╩════════╩═══════╝
``````
• Welcome Votemike. As worded this question is off topic. Coupons are not applied to taxes but to total amount. Dec 3, 2016 at 12:19
• @Dheer What are you referring to when you say 'total amount'? When the tax man came to claim the VAT for this off of me.... How much would I have to give him? And how would I work it out? Dec 3, 2016 at 12:51
• You need to pay govt full 5 EUR. You can't apply voucher to select items. You can discount a item and pay less tax but that is different. You need a lawyer and tax consultant Dec 3, 2016 at 17:52
• Your arithmetic is a bit off here. If an item costs GBP10 "gross" with a 20%VAT rate, then the "net" would not be GBP8. The correct net would be GBP8.33 since 8.33+20% = 10. And similarly with the other items. Dec 3, 2016 at 18:11
• @NickR you are correct. I was doing this late last night. Dec 4, 2016 at 20:10