# Discounts and overrides in AvaTax

Source: https://developer.avalara.com/vat-ecom/transactions/discounts-and-overrides/discounts-and-overrides-in-avatax/

Before continuing with transactions, be sure you understand the difference between discounts and overrides.

**Discount**: A discount is a reduction of the price on your item/service. AvaTax provides several ways that you can handle a discount, including price reductions, automatically distributed discounts, and manufacturer discount codes.

**Override**: An override occurs used when your transaction overrides the normal behavior of the AvaTax tax calculation engine. You can use overrides to change the tax amount or tax date for a transaction.

We’ll describe both discounts and overrides in greater detail in the next sections.