How do you guys round vat?do you round it up or down and why?if anyone has once asked SARS about this please share the answer they gave you with the rest of us.
How do you guys round vat?do you round it up or down and why?if anyone has once asked SARS about this please share the answer they gave you with the rest of us.
You round it to the nearest cent. Why? Because it makes cents
Yes you must round it to the nearest cent and that makes cents but I was asking when rounding it to the nearest cents do you round it up or down.
What I tend to find more interesting is whether VAT should be calculated per item, per line or per invoice. It can make a substantial difference.
Participation is voluntary.
Alcocks Electrical Services | Alcocks Pest Control & Entomological Services | Alcocks Hygiene Services
Yes but the 3rd and 4th decimal point comes into play here.
Lets take a line item of R 2.27, VAT is 0.3178 or R 0.32c
Lets take 221 items of R 2.27, totaling to R501.67, VAT is R 70.2338 or R 70.23 on the total.
If we take the individual item VAT, R 0.38c times 221 items, then the VAT is R 70.72, an error of R 0.49c
Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za
Yes immaterial, but the figures do not balance in trial balances and balance sheets with out an adjustment entry, and if it is owing to SARS you can not get a clearance certificate.
In this example it may be a small amount, how ever take this example over a million items, then it may become significant to the point that it can skew a trial balance
If you have R 999,999.51 in the bank, you are not a millionaire
Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za
You'd think. I've had big companies give me grief on smaller VAT calculation differences on a single invoice though.
And it can really add up across a year under the right (or should that be "wrong") circumstances. Imagine the Justloadit rounding example where that is your only product!
Participation is voluntary.
Alcocks Electrical Services | Alcocks Pest Control & Entomological Services | Alcocks Hygiene Services
Justloadit (01-Nov-16)
Did you like this article? Share it with your favourite social network.