VAT rounding

KatieAAT

I’m learning through Kaplan who round vat mathematically but now i’m doing green light tests on AAT, I keep getting the rounding wrong. Is there a rule for the AAT Assessments. Is Vat always rounded down regardless ??

davealucas

@KatieAAT Normally yes, but to be honest it doesn't happen much in business.

There is a little known VAT rule that allows VAT calculations to round down in all cases with the exception of the retail sector. Not sure why the retail sector can't but there you go.