VAT

skhaira
skhaira Registered, Tutor Posts: 1
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: 91
    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.
    Accounts Executive, ғɪᴀʙ ᴍᴀᴀᴛ
    QBO & Xero certified advisor

    AAT
    Level 2 Certificate in Accounting - 17 Jun 2015
    Level 3 Diploma in Accounting - 22 Jan 2016
    Level 4 Diploma in Accounting - 19 Dec 2017
    MAAT - 27 Mar 2018

    ACCA
    Advanced Diploma in Accounting and Business...
    F4 Corporate and Business Law - 4 Jun 2019
    F5 Performance Management - 15 July 2019
    F6 Taxation (United Kingdom) - 3 Dec 2019
    F8 Audit and Assurance - 2 Mar 2020
Privacy Policy