Taxable Value
Also called: assessable value, net value
What is Taxable Value?
Taxable value is the amount on which GST is calculated for a supply. It is the price charged after any discount given at or before the time of supply, and before the tax itself is added.
Why Taxable Value matters
Every downstream number depends on this base — the tax charged, the invoice total, the value reported in returns and the credit your customer claims. An error here quietly propagates through all of them.
Taxable Value formula
Taxable value = Gross price − Discount at the time of supply
Add incidental charges recovered from the customer before applying the tax rate.
How Taxable Value works in practice
Discounts agreed at the time of billing reduce taxable value; discounts given afterwards need a credit note to have the same effect. Freight, packing and similar charges recovered from the customer generally form part of the value.
Frequently asked questions
Charges you recover from the customer as part of the supply generally are, and are taxed at the same rate as the main supply.