Client supplies a multi store supermarket operator and bills via head office central billing. At every invoice settlement the customer makes a deduction for "LTA" which is calculated as a percentage of the NET sale (before Vat). So if invoice is €100 plus vat €23 total €123, the customer calculates LTA at (say) 10% of €100, or €10, and this is deducted from the payment, and the supplier gets €123 - €10 = €113. No mention of vat in the transaction. What is the correct vat treatment for the supplier for this?
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