VAT

skhaira
skhaira Registered, Tutor Posts: 1
in VAT
Hi could someone help to explain why VAT is rounded down?
Eg if vat is £13.765 it becomes £13.76 and not £13.77

Comments

  • davealucas
    davealucas LondonMAAT Posts: 103
    VAT rules permit the rounding down of fractions of a penny except in the retail environment.
  • KoopaCooper
    KoopaCooper London, UKMAAT, AATQB Posts: 226
    I think that it is permitted for VAT on sales to be rounded down, and for VAT on purchases to be rounded up - i.e. in favour of the business over HMRC.
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