VAT Rounding Problem

Hi there

I am using the API to input invoice data into Quickfile. There seems to be a discrepancy between the two systems; the VAT total is out by 1p in some cases. I believe this is down to the way VAT is rounded?

My external system says the VAT in this case should be 1.24. I make it right:

2.53 x 1.2 (VAT 0.506 ) = 3.036
3.68 x 1.2 (VAT 0.736 ) = 4.416
Sum total of the VAT on each line: 1.242

I always thought VAT should be rounded down to the nearest 0.5p on the total ?

Am I wrong?

Thanks for your help

We apply Midpoint Rounding (away from zero). We also round the line totals before summing, rather than summing then rounding.

So our calculations work like this:

2.53 x 1.2 (VAT 0.51 ) = 3.04
3.68 x 1.2 (VAT 0.74 ) = 4.42

Total VAT = 1.25

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