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VAT

skhairaskhaira 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

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Comments

  • davealucasdavealucas LondonMAAT Posts: 59
    VAT rules permit the rounding down of fractions of a penny except in the retail environment.
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  • KoopaCooperKoopaCooper London, UKMAAT, AATQB Posts: 172
    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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