From December 1 2019, rounding cash amounts to 5 cents is mandatory for all businesses. In this way the 1 and 2 euro cents must gradually disappear. Too often the coins remain in a piggy bank, causing a scarcity. That is why new ones have to be created constantly, while these entail high production costs.
- Who must round?
- How to round?
- Won’t customers fear price increasing?
- Which rules must a company follow?
- The rounding rules
- What about accounting?
- What if you work with Optios?
1. Who must round?
Anyone who pursues an economic goal in a sustainable way.
2. How to round?
The total amount of all purchases that the customer wants to pay with cash must be rounded. This is when the payment is made in your business, so in the physical presence of both the consumer and the trader and when the amount to be paid is greater than 5 cents. Therefore, rounding is not permitted in the case of selling from a distance (such as via the internet) and between private individuals or companies.
3. Won’t customers fear price increasing?
No, because the rounding is only completed on the total amount. So it is not the intention that all individual articles are also rounded. One time the price is rounded up and the other time down, which means that the prices keep each other in balance.
4. Which rules must a company follow?
- Do you only wish to round payments in cash? Then the rounding is only applicable on the part in cash. Even when the payment is partially made in another payment method.
Do you wish to apply the rounding to payment methods other than cash? Then the rounding is made on the total amount (Even if the payment is partly made in cash and another payment method.) Make sure that in this case you hang the following legal text clearly visible in the salon “specific text (PDF, 524.6 KB)“.
- The cash register ticket should clearly state both the total amount and the original amount before rounding.
5. The rounding rules
Does the total amount to be paid end at ,01€ or ,02€? Then you have to round to the lower ,00€.
👉🏼 For example: € 13.91 becomes € 13.90.
Does the total amount to be paid end at ,03€ or ,04€? Then you have to round up to the higher ,05€.
👉🏼 For example: € 13.94 becomes € 13.95.
Does the total amount to be paid end at ,01€ or ,02€? Then you have to round to the lower ,05€.
👉🏼 For example: € 13.97 becomes € 13.95.
Does the total amount to be paid end at ,08€ or ,09€? Then you have to round up to the higher ,00€.
👉🏼 For example: € 13.98 becomes € 14.00.
6. What about accounting?
The VAT must be calculated on the original amount, not on the rounded amount. This means that little will change regarding to accounting. Which doesn’t mean that you don’t have to change anything. Your cash register will have to be adjusted to this, because the receipt must show both the original amount and the rounded amount. For this you have to adjust your cash register.
7. What if you work with Optios?
The cash register can still be used as before. If people pay in cash, you can round the amount that Optios (total) displays yourself. You then write down the original amount on the cash register ticket (before it was completed).
Attention: differences can occur between the checkout and the accounting.