How does VAT at Poundland work?

[Pudney]

Which is addressed in the link I posted previously:

"17.5.2 Calculation based on tax per unit or per article
If you want to work out the VAT per unit or per article (for example, for use in price lists), you must work out the amounts in one of the following ways:

4 digits after the decimal point and then round to 3 digits - for example, if the VAT is £0.0024, it should be rounded to £0.002 (0.2p)
the nearest 1p or 0.5p - if you decide to do this, you must not round the VAT down to ‘nil’ on any unit or article that is liable at the standard or reduced rate, for example, if the VAT is £0.0024 it should be rounded to £0.005 (0.5p)"

No experience - what's yours?

The entire section is in reference to how to calculate the VAT rounding on an invoice, i.e. the document created at each transaction (the sale being made per person). Systems have to deal with rounding at the point of sale, not just at the end of the VAT period (although they may also have to deal with rounding at this point due to rounding performed earlier in the period).

I'm a Chartered Accountant, previously an auditor who had to audit sales of companies (and the associated VAT accounting) and now a specialist corporate tax adviser, although VAT isn't my specialism.

Edit: I have about 2 years of audit experience and the associated finance systems (including retail and B2B) and I think 5 years now of tax. I'm losing track.

 

[Haggisman]

So with your vast level of experience, why leave us guessing?

 

[Pudney]

So with your vast level of experience, why leave us guessing?

I didn't, I told you the systems should be able to work out VAT on a per item basis in my first post

 

[jas72]

lol brilliant film.


I'm sure they total all sales over a month then round up or down the total...

 

[Skeeter]

Honestly, who the hell cares?

 

[wildman]

Honestly, who the hell cares?

HMRC
The Public
The business owner

Iwould guess they all care because HMRC have a hard-on for VAT dodgers and people that file incorrect or inacurate tax returns, the public should care because VAT collection adds to the coffers, and the business owner should care because he gets it wrong and he'll be breaking rocks in the hot sun at her Majesties pleasure for a few years

 

[Dj_Jestar]

Honestly, who the hell cares?

You post that after your thread about push-chairs on trains? Really?

 

[[FnG]magnolia]

They probably take the Amazon approach to tax payment, making most of this thread redundant.