Sometimes you see on the final invoice that the VAT amount differs by a few cents from what you calculate yourself when applying the VAT percentage to the total amount excluding VAT. This may seem like a calculation error, but it is not. Below we explain why this occurs.
How the VAT on the final invoice is calculated
The final invoice is a summary of all individual invoices sent to the participants of your event. VAT is calculated on each individual invoice based on the VAT rate applicable to that ticket or product (for example, 9%, 21%).
For each invoice, the VAT amount is then rounded to two decimal places, as required by law.
When we prepare the final invoice, we add up all those rounded amounts. As a result, the total VAT amount on the final invoice may be a few cents higher or lower than if you were to calculate the VAT percentage over the total revenue once.
An example
Suppose there are 5 participants, and for this event, the VAT rate of 9% applies.
The invoices to the participants look like this:
| Participant | Amount excl. VAT | VAT (9%) | Amount incl. VAT |
|---|---|---|---|
| Anna | € 12.37 | € 1.11 | € 13.48 |
| Pieter | € 7.83 | € 0.71 | € 8.54 |
| Noor | € 19.46 | € 1.75 | € 21.21 |
| Milan | € 5.60 | € 0.50 | € 6.10 |
| Emma | € 4.96 | € 0.45 | € 5.41 |
The total amounts are:
Excl. VAT: €50.22
VAT (added per invoice): €4.52
Incl. VAT: €54.74
However, if you were to calculate 9% over €50.22, you would arrive at €4.52 → rounded €4.52, but sometimes this could be €4.51 or €4.53 depending on the rounding per invoice.
The difference of a few cents arises because the VAT is rounded per invoice, not just on the total.
Why this is the correct approach
From an accounting perspective, it is correct to calculate and round VAT per invoice. Each invoice sent to a participant is a valid document in itself and must be accurate — including the VAT amount and rounding.
The final invoice is then a sum of all these individual, rounded amounts. If Holibiza were to calculate the VAT only at the end over the total, the total amount would no longer match the sum of the invoices. That would be accounting-wise incorrect.
