## SARS VAT rounding correction in Pastel at end of VAT period

Hi

As per the 8 June 2011 VAT Fraction Letter from SARS, to calculate the VAT201 Output VAT portion of field 1 supply of goods and services at standard rate, a fraction of 0.12280 must be applied. This fraction has been rounded down to 5 decimal places from 14/114. This results in a slightly lower amount of VAT declared in field 4 than that calculated by Point of Sale and fed into an accounting system such as Pastel.

Thus, taking a sale of R10,000 as an example: Point of Sale adds 14% vat, resulting in R11,400 as the total amount including vat. The vat amount is R1,400.

At the time of performing the vat return, as per the vat letter, when calculating vat backwards from R11,400, the vat portion is R11,400 * 0.12280 = R1399.92

This is 8c less than the amount actually charged at Point of Sale and received by the vendor.

How should this 8c difference be reflected/adjusted in Pastel Partner v14 to v17 accounting at the end of the vat period? The difference could be fairly significant as there will be many sales accumulated over the period into the vat return total and not just the one in my example.