Tax Bifurcation of Cash discount on AP invoice

I will try to clarify this with an example.

Supplier invoice & posting the payables.
The customer pays within 14 days and deducts 1% from the invoice value.

Invoice entry:
Item expense A/C Dr 100
Tax recoverable A/C debit 19
Liability A/C credit 119

Payment within 14 days, calculation will be below:

Invoice amount 100 Eur
2% discount -1 Eur
Payment amount 99Eur

Accounting payment with discount:
Liability A/C Debit 119
Cash clearing A/C Credit 117.81
Discount A/C Credit 1.19

My question is, where and when is the VAT correction posted? The deduction of the discount changes the VAT base. However, I cannot find the corresponding adjustment posting anywhere in Oracle.