How VAT calculations are done – Future Ordering

The Future Ordering platform can calculate VAT in different ways and this is configurable.

The setting is called taxCalculationMethod and can be set to the following values

"ItemPerUnit"
"LineSummed" 
"OrderSummed"
"LinePerUnit"
"ItemSummed"

Rounding Method

Future Ordering is using Commercial Rounding for VAT calculations, i.e:

If the number in the first decimal place is 0, 1, 2, 3 or 4, then it is rounded down.
If the number in the first decimal place is a 5, 6, 7, 8 or 9, then it is rounded up.

VAT Calculation Examples

In all examples, we use the following order:

Pizza, quantity 2, vat 25%

Add Bacon, quantity 3, vat 25%

Milk, quantity 4, vat 12%
Coke, quantity 5, vat 25%

With the different settings, the total order VAT is calculated like the list below.

(Each time it says “X.Price” it means the VAT for the items price with unlimited number of digits. The large bold parentheses is for the rounding, to more clearly show which parentheses is for rounding and which are only for preference.)

```
ItemPerUnit
```

25% VAT: Round(Pizza.Price) * 2 + Round(Bacon.Price) * 3 * 2 + Round(Coke.Price) * 5
12% VAT: Round(Milk.Price) * 4

```
ItemSummed
```

25% VAT: Round(Pizza.Price * 2) + Round(Bacon.Price * 3 * 2) + Round(Coke.Price * 5)
12% VAT: Round(Milk.Price * 4)

```
LinePerUnit
```

25% VAT: Round(Pizza.Price + (Bacon.Price * 3)) * 2 + Round(Coke.Price) * 5
12% VAT: Round(Milk.Price) * 4

```
LineSummed
```

25% VAT: Round(((Pizza.Price + (Bacon.Price * 3)) * 2) + Round(Coke.Price * 5)
12% VAT: Round(Milk.Price * 4)

```
OrderSummed
```

25% VAT: Round((Pizza.Price + (Bacon.Price * 3)) * 2 + Coke.Price * 5)
12% VAT: Round(Milk.Price * 4)