VAT Adjustment for Payment Discounts in Microsoft Dynamics NAV / Business Central
25 Aug, 2026
When using payment discounts, it is important to configure correctly how VAT should be handled when the discount is applied.
For this purpose, the system provides the Adjust for Payment Discount setting in the VAT Posting Setup.
This setting determines whether the system should also adjust the VAT amount originally posted on the invoice when a payment discount is applied.