According to Item (2) of Article 2 of the Provisions on Certain Specific Issues of Value-added Tax, if a taxpayer sells goods at a discount and indicates the sales amount and discount amount respectively on the same invoice, value-added tax can be levied according to the discounted sales amount; If the discount amount is invoiced separately, no matter how it is handled in accounting, the discount amount shall not be deducted from the sales amount. When issuing invoices, taxpayers can issue the selling price and discount amount in two lines, or directly reduce the unit price.

Extended data:

Commercial discount refers to the deduction of commodity prices given by enterprises according to market supply and demand or for different customers. Commercial discount is one of the most commonly used promotion methods for enterprises. In order to expand sales, occupy the market and give commercial discounts to wholesalers, enterprises adopt the promotion strategy of selling more products at lower prices, which is what we usually call "small profits but quick turnover". Under the condition of commercial discount, the operating income and value-added tax are confirmed at the discount price;

References:

Shanghai Taxation Bureau-Provisions on Some Specific Issues of Value-added Tax