VAT

As VAT is calculated on amount after Trade & Cash Discount whether customer avail the Cash Discount or not. Hence I have confusions regarding to two different scenarios, here it comes.

—Data—
List Price 250
Trade Discount 20%
Cash Discount 2.5%
VAT 17.5%

—————-INVOICE—————
List Price————————-250
Trade Discount—————–(50)
————————————-___
————————————-200
*VAT——————————34.12
————————————-___
————————————234.12

*—*VAT Calculation—
CD 200 x 2.5% = 5
Net Effect 200 – 5 = 195
VAT 195 x 17.5% = 34.12

—–
Scenario 1;
If the customer does not avail the Cash Discount, would the VAT remain unchanged or we again calculate VAT on 200 (price after TD only) and alter the invoice.

Scenario 2;
If the customer avail the Cash Discount, on which amount we will calculate CD, on 200 or on 234.32? (VAT is already calculated on price after TD & CD) and whats the VAT treatment in this scenario?

Looking forward for your kind responses,

Regards,