Discount types (GTD)

Generic discount type

Reduces the taxable amount by the discount amount in all US jurisdictions

Reduction in sale price based on the timing of the customer's payment. Assumes that the cost of the discount is absorbed by the party offering the discount

Reduces the taxable amount in some jurisdictions but not others depending on the applicable laws

Reduction in sale price based on the quantity of items purchased by the customer

There is currently no content associated with this discount type in GTD, so it will not reduce the taxable amount in any US jurisdiction

Discount offered by the seller, the cost of which is fully absorbed by the seller

Reduces taxable amount in all jurisdictions based on state law

Discount offered by the seller, the cost of which is not absorbed by the seller. The seller is reimbursed by a third party for the difference between the regular sale price and the discounted sale price

Does not reduce the taxable amount in most jurisdictions, though there are some exceptions

Discount offered after the sale has occurred. The customer pays the full sale price at the time of the sale, but will be refunded a portion of the sale price at a later time

May reduce the taxable amount depending on the jurisdiction

Discount offered to seller at time of purchase based on the value of whatever is being traded in

Jurisdictions have different rules for tangible personal property trade-ins versus vehicle trade-ins. This discount type does not assume the type of item being traded, so the impact it has on the taxable amount varies by jurisdiction based on applicable laws

Discount based on the portion of the transaction paid by a gift card or gift voucher

Does not reduce the taxable amount as the portion of the sale price paid by the gift card/voucher is taxed the same as if it were paid in cash