Discounts

This page provides information on deducting discounts through Kustom Checkout (KCO), including vouchers, codes, gift cards, and loyalty clubs, along with integration and VAT handling.

Discount voucher or code

A discount code or voucher offers a price reduction (percentage or absolute value). VAT is calculated based on the discounted price.

KCO supports value-based and percentage discounts, applicable to individual items or entire orders. Currently, KCO doesn't offer a UI for discount application; it's applied to order lines.

Percentage discounts are handled either as a total_discount_amount or as separate order lines with negative amounts.

The formula for calculating tax amounts is: total_amount - total_amount * 10000 / (10000 + tax_rate).

Example of a discount per order line

A white t-shirt is discounted 20% with a 25% tax rate.

{
  ...
  "name": "white t-shirt",
  "quantity": 1,
  "reference": "12-345-ABC",
  "tax_rate": 2500,
  "total_amount": 25000,
  "total_discount_amount": 5000,
  "total_tax_amount": 5000,
  "type": "physical",
  "unit_price": 30000
}

Example of a fixed $10 discount

A $10 discount is applied as a separate order line.

{
  ...
  "name": "10 USD discount",
  "quantity": 1,
  "reference": "12-345-ABC-discount",
  "tax_rate": 2500,
  "total_amount": -1000,
  "total_tax_amount": -200,
  "type": "physical",
  "unit_price": -1000
}

Example of a buy-2-for-3 deal

A buy-2-for-3 discount is applied.

{
  ...
  "name": "buy 2 for 3 discount",
  "quantity": 1,
  "reference": "buy 2 get 3-discount",
  "tax_rate": 2500,
  "total_amount": - {3\*item price - 2\*item},
  "total_tax_amount": - {total_amount\*0.2),
  "type": "discount",
  "unit_price": -{3\*item price - 2\*item}
}

Gift cards

Gift cards are multi-purpose vouchers with a predefined face value. No VAT is triggered upon the gift card purchase; VAT is applied only when the gift card is redeemed. Redemption should be handled as a negative order line with a 0% VAT.

Loyalty clubs

Loyalty schemes and points are handled on a case-by-case basis. Bonus checks should be handled similarly to vouchers.

Store credit

Store credit for returned items should be treated as a gift card, a new negative order line with 0% VAT. Only subsequent purchases trigger VAT.