SARS provides a solution for a problem that really shouldn’t exist
In South Africa, the 1 cent, 2 cent, and 5 cent coins are no longer minted – but many retailers still follow the time-honoured practice of setting their prices to end in 99 cents. When cash is tendered, the issue with change is resolved by rounding the total down to the nearest 10 cents.
This sometimes gives rise to a rounding error when it comes to the VAT. In the greater scheme of things, the amount of money involved is immaterial. However, the drafters of the VAT Act disagreed – and came up with a convoluted solution to a problem that shouldn’t exist.
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