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I've actually had a customer who wanted VAT on invoices calculated per product, which was completely irrelevant, instead of over the complete invoice.
The problem is, you're going to round VAT to two decimals, because no one ever pays €0.001.
So by adding up all the VATs for each product we got rounding errors (and those rounding errors added up!).
If you calculated the VAT over the entire invoice (like EVERYBODY in that business does) it wouldn't add up.
But for some reason they really wanted to have the VAT per product.
We went as far as to round to 16 decimal places, but we still ended up with rounding errors
Ultimately, we actually went for "as correct as possible with x decimal places."
In this case "correct" was of course VAT over the entire invoice because that was the only legal kind of VAT
Here if a product is marked as 4.99 you'll pay 4.95 at the till / cashier, due to us no longer having 2c coins. AFAIK the rounding is only done on the total, but if you wanted to save a few cents you could pay for each product individually.
Not around here as mathematically correct rounding is applied here. 4,99 and 4,98 will result in 5,00. 4,96 and 4,97 will become 4,95. Unless you pay with your debet/credit card then it remains whatever it is.
Over here, in a store (for example, supermarket), VAT is included in the product price.
So 500 gr. (pre-packaged) grapes costs €2.19 incl. VAT.
If you buy two packs, you pay €4.38.
If you pay cash everything is rounded to 5 cents, so €4.38 would become €4.40, but €4.37 would be €4.35.
I can't remember the last time I paid cash at a store
This particular company sold meat (wholesale), so a customer would order five ribs, but they would pay per kg.
The customer gets an estimated price, based on what my customer sent them, then that customer would weigh everything again, and that weight was invoiced.
Naturally, you don't know the VAT until the actual invoice.
And since the VAT isn't included in the individual prices, like in a supermarket, you really can't do anything other than calculate VAT over the entire invoice
It's how I invoice too, and pretty much every business in the Netherlands.
If we didn't have the 1c piece (penny) here in the US, not too many cashiers would be able to round it correctly to the nearest 5c. It goes to show that we should better fund our education system. Because it is biting us in the rear.
I had a similar experience years ago. Did a report showing project costs based on hours and rates, shown for each individual on the project, then totaled up to the project, then all projects for each manager, all managers for each director, then a grand total. Since the directors, managers, etc. wanted to see the "real money", everything shown to the (U.S.) cent - no "extra" places shown.
Report was pretty nice - controls so each manager or director could only see "their" projects information, could switch between various summary-levels or go all the way into the details, etc.
Everyone happy until a new director comes in from HQ Sales to take place of a retiree. He insists that rather than just using the online reports that everyone else loves, it is "required" that PRINTED versions be prepared for all 5 directors every month (remember, he came from HQ so seemingly had to throw his weight around). Each monthly set ran to three 3-inch binders. It would take two admin assistants 2 weeks to get everything printed, copied, collated, and delivered.
The other four directors would just sigh and throw the printed copies on a shelf. This guy, however, would go through everything with a fine-toothed comb, as evidenced by him coming to me one month and starting to ream me out because his totals shown in the report summary were off from what he got by adding up every single line-item of every project under him - by $0.02 (of his multi-million dollar monthly budget - this was a pharmaceutical company in the 1980s). Thankfully, the director I was actually working under, who also happened to be the "managing director" and a VP, plus the auditor heard the commotion and came over. Mr. "2-cents" was given a lesson on rounding in reports and asked to explain why he was wasting so much of his time, plus taking a person-month of admin assistant time and 4 feet worth of dead trees looking for these kinds of "problems" rather than actually directing his projects. The reports stopped being printed and copied, and the fine-toothed-comb director was seen out the door shortly afterward.