VAT Discount of bikes in one country

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Hi everyone, 

 

I'm wondering if someone here might be able to point us in the right direction on how to solve a VAT calculation problem for one country.

 

The Problem.:

When selling complete bikes to Iceland there is a VAT discount.  So VAT is only calculated after the first 200.000.- kr.

 

Example 1:

Bike price:          500.000.- kr.
VAT Discount: 200.000.- kr. VAT 24%
Total VAT Amount: 72.000.- kr. (300.000.- x 1.24) ______________________________________________________
Total Amount: 572.000.- kr.

Example 2:

Bike price:          300.000.- kr.
Additional product    50.000.- kr.

VAT Discount:        200.000.- kr.  (Only available for bike and not other products)
VAT 24%
Total VAT Amount: 36.000.- kr. (150.000.- x 1.24) ______________________________________________________ Total Amount: 386.000.- kr.

Thank you in advance!

Bjarni

 

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