This post’s topic is going to be Superfaktura’s rounding system for prices, VAT base and VAT itself. Why should this interest you? The answer lies in the two examples that I’m about to give, which differ in the way we round the various elements up.
- Lets imagine we sell books. The unit price of a book without VAT is 5.47 EUR
- The VAT rate is 10%
- We want to create an invoice for 5 books
- So how much is the tax base, total price with VAT and VAT itself?
In this case, we first add up the unit price of the books without the tax, which comes to 5×5.47=27.35. Using this sum as the tax base, we get VAT equal to 2.735 that comes up to 2.74 when we round it up to two decimal places.
Thus, the total price is equal to 27.35 + 2.74 = 30.09.
We wish to have only unit prices with VAT in our invoice. As a result, we get:
Price of 1 book without VAT: 5.47
Price of 1 book VAT included: 5.47 + 0.547 = 6.017, which is 6.02 after rounding up.
Thus, the total price of all 5 books is 5 × 6.02 = 30.1
As you can see, the total price differs depending on where in the process we include VAT, either in the unit price or in the total price.
How does Superfaktura round the prices?
- The unit price can be set up to 4 decimal places.
- The tax base is calculated by adding up all the unit prices without VAT for the whole invoice.
- After this, the tax base is rounded up to 2 decimal places.
- Subsequently, the VAT is computed from the rounded tax base and is rounded to 2 decimal places as well.
- Finally, the total sum of the whole invoice is rounded to 2 decimal places as well.
If there is something unclear, please go ahead and drop a comment. :)