Do you find the rounding of the VAT rates on the invoices to your guests or on the z-report strange? Then there is now the all-clear: VAT will always be calculated correctly!
And now to explain how it is calculated:
In the orderbird MINI, the VAT is calculated for each item and at the end of an invoice all calculated VAT rates are added up .
Compared to an invoice in which all items with the same VAT rate are first totaled and then the VAT is calculated using the total, the rounding results can differ. The following calculation example shows you the difference:
A calculation example
You issued the following invoice:
| 1x pen set at 7 € | €7.00 | B |
| 2 books at €5.50 each | €11.00 | B |
| 2 books at €4.20 each | €8.40 | B |
| 1 x booklet at 4 € | €4.00 | B |
| In total | €30.40 | |
| VAT | ||
| B=19% | Gross | €30.40 |
| net | €25.54 | |
| VAT | €4.86 |
Calculation of VAT: per item vs. across multiple items
| VAT calculation per item | VAT calculation via totaled items | |||
| 1x pen set at 7 € | €7.00 | B | €7 /119*19 = €1.12 |
|
| 2 books at €5.50 each | €11.00 | B | (€5.5 /119*19) * 2 = €1.76 |
|
| 2 books at €4.20 each | €8.40 | B | (€4.20 /119*19) * 2 = €1.34 |
|
| 1 x booklet at 4 € | €4.00 | B | €4 /119*19 = €0.64 |
|
| In total | €30.40 | |||
| VAT | ||||
| B=19% | Gross | €30.40 | ||
| net | €25.54 | |||
| VAT | €4.86 | €1.12 + €1.76 + €1.34 + €0.64 = €4.86 | €30.40 /119*19 = €4.85 | |
Rounding differences in the cent range are OK
In this calculation example you can see that the two calculation methods lead to different rounding results. Which result is correct?
Both results are correct! Your tax advisor and the tax authorities are aware that there may be minor deviations when rounding cent amounts , because in purely arithmetic terms the results have several decimal places. Here a problem arises between mathematical accuracy and practice, because currencies only have two decimal places, the cent amounts.
If we had an item that we sell for 1 cent, then the VAT to be paid would be zero because 1 cent cannot be further divided in the monetary system:
- (0.01/119)*19 = 0.001596
- This corresponds to €0.00 in euros and cents VAT. Because €0.001596 cannot be represented in the currency system.
Of course, you can see the actual amounts that go to the tax office via your orderbird MINI. Therefore, the calculation of the totaled items or the "backwards" calculation may lead to differences.