UAE VAT Law, round up invoice

round up the cost of products by up to 20 fils. For example, should a product cost Dh10.05 after VAT, the price can then be marked up to Dh10.25.
In cases exact change cannot be given, rounding off can be applied;
for example, 13 fils can be rounded off to 25 fils, 39 fils to 50 fils and 69 fils to 75 fils

Hello @sree, I’m sorry, but I don’t think there’s a question here…

… can you let us know what you’re trying to do, so we can help you?

Perhaps an example of an invoice you’re entering would help.

@sree, is this rounding because you don’t have small coinage, less then 25 fils or is it just a convenience thing or something else…

The denomination of coins are in 25 fils, 50 fils & 75 fils here in UAE. So if you sell a product at AED 56 with VAT of AED 2.8 on top of it, Tax Invoice price becomes AED 58.8.

Hence collection to this Tax Invoice rounds off to AED 59.

There are only two choices for rounding: to nearest unit of currency or rounding down. Note that rounding down is the usual choice for two reasons:

  • Customers will be angry if you tell them the cost is X, plus a certain percentage tax, and then you charge more.

  • Tax authorities may also be angry, because you are effectively raising the sales price without assessing more tax on the increase. Don’t choose this option unless tax regulations specifically allow it. Imagine a situation where a business purposely set all its prices so rounding up would give them a little more income on every transaction that was not subject to tax. You would not get away with that for long.

There are some countries where low-denomination coins/bills are not circulated. When these cases are known, Manager adjusts pricing to amounts that can be paid with available currency. This is done, however, only when official regulations to that effect exist.

Hi, as per UAE law the rounding off the invoice value after VAT should be next to possible coin fils.
Foe Example; the bill shows Dh10 and 5 fils, one may pay up to Dh10.25, and if the bill is Dh10.35 fils, it is fine to pay up to Dh10.50 fils.

But in manager software (pls see the image) the rounds

off is AED. 0.30. Please help me to sort out the things.

Can you provide a link to official documentation that what you say is true? It seems that what you describe raises the price to the customer without the additional price being taxed.

Hello all ,
Here in the UAE one of my customers noticed that VAT of 5 % is rounding higher , where as when done manually from the calculator the correct vat amount is calculated
AED 2,205.39
AED 110.28
AED 2,315.67

the correct amount should be 2,315.65
How can I correct this on the system to properly show the right amount for the customer ?

5% of 2,205.39 = 110.2695 rounded to 110.27

Are you using tax included or tax excluded pricing?

hi joe91
thanks for your reply
my pricing on the system is tax excluding

@George_Flo, you only mentioned the subtotal, not the individual line items. Manager calculates taxes on line items before adding those together. Sometimes, this results in different rounding than adding and calculating tax on the subtotal. If you search the forum, you will find many discussions on this. Most accounting software works this way. It is perfectly acceptable under your law.