Rounding differences (bookkeeping)

For VAT filings, it's common to have small differences between the exact amounts in your bookkeeping (calculated to the cent) and the amounts filed with the Belastingdienst (rounded to whole euros).

Use a specific rounding differences account in your bookkeeping. This account can record minor discrepancies caused by rounding when submitting VAT returns. Here's how you can manage it:

• Rounding in VAT Return: When filing your VAT return, round all figures to the nearest whole euro, as required by the Belastingdienst
• Create a "Rounding Differences" account: In your bookkeeping, create a dedicated expense or revenue account called something like "Rounding Differences VAT"
• Book the difference: After you submit the VAT return, calculate the difference between the rounded figures and the exact amounts in your bookkeeping. Record this difference in the "Rounding Differences" account.

This is typically a balance account. Whether it is debit or credit depends on what you consider the 'default' case. For me, this will be a credit account: I round off in my favour, so naturally, this will be a credit account.

Rounding difference the other way

I now discovered a payment from a customer, that misses € 0.03. I already decided to have a "rounding difference" account that will be credit, since most rounding differences will be in my favour. However, in this case it is not in my favour. Should I just book a negative number of the aforementioned account? Or create an additional account, like "rounding differences (2)" that's balance - debit?

You don't need to create a separate account for this. You can simply book a negative number in the existing "rounding difference" account, even if the difference is not in your favor. This is a standard practice in bookkeeping, as rounding differences can go either way, and it is more efficient to handle both positive and negative discrepancies within the same account.