![]() ![]() So that has created the tax return filing industry and associated lobby groups. There's a political affiliation whose goal is to make filing a tax return harder and more complicated to do so that people will complain more about it and hate the process. In the USA they have a particular hatred of making tax easier to pay. ![]() Īlso somewhat related, we quote our fuel prices to 3 decimals.ĭoes the sticker have to show all taxes or just the sales tax/GST/VAT? I know that pretty much every country in the world has an alcohol tax that is applied to things like wine. US tax code, at least as far as income taxes go, uses the same rounding method (nearest decimal) however sales tax is can be quite a bit more complicated. In both cases, mathematical rounding (half-up) is used. > Curiously, as far as I understand the Polish tax code (IANAL), the choice of the method to use is actually given to the vendor! The law recommends that you calculate the tax by multiplying the rate with the total taxable amount, but also allows the seller to choose to calculate per-item tax, and sum that. > Regardless of the rounding method, the fair way is to sum up purchases and compute tax on the total, precisely to minimize the loss of precision on rounding.Īgain, agreed, this is why we do it this way in the US. With proper rounding, it's a wash.Īgreed! If they are actually rounding it will be a statistical wash. > That depends on whether they're rounding, or taking a floor or ceiling :). In both cases, mathematical rounding (half-up) is used.īut in practice, there's little to no difference unless you're doing a single purchase of a lot of items with weird pricing bias. ![]() Regardless of the rounding method, the fair way is to sum up purchases and compute tax on the total, precisely to minimize the loss of precision on rounding.Ĭuriously, as far as I understand the Polish tax code (IANAL), the choice of the method to use is actually given to the vendor! The law recommends that you calculate the tax by multiplying the rate with the total taxable amount, but also allows the seller to choose to calculate per-item tax, and sum that. I just did some back-of-the-dev-console calculations on a random groceries receipt I found on my desk, and I discovered that if the tax was calculated per item, I'd pay 0.01PLN less of it! That depends on whether they're rounding, or taking a floor or ceiling :). ![]()
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