Accounting - UK and USA - rounding?

If I sell 3 different products each that costs £125 (or $125) before Sales Tax. Assuming Sales Tax is 17.5% what is the total sales tax due on the invoice? I am getting different figures based on doing line by line rounding or rounding the total sales tax - what is the proper accounting way of doing it!

Answer:
Correct answer is to multiply 125 by 17.5%. this gives 21.88 VAT/TAX total for item 146.88.

although if your getting 21.87 tax it doesn't matter you've just got your calculator set up a little different.

As long as you account for the VAT correctly it doesn't matter over 1p.

The other double check is to take your gross figure and x7/47. this should give you the VAT. ie 146.87x7/47 = 21.88 thus giving you a net figure of 124.99 since you know this should be 125.00 it shows it incorrect.
I'm guessing £65.625 for the lot?
So the total would be £440.63
In Uk you add tax to the TOTAL not individual amounts.

Therefore your total bill is £125 x 3 x 117.5/100 = £440.63 With matters of Tax - always round up to be on the safe side.

If you sell two, it is £293.75, and indiviually, £146.88.

Of course - doing the individual price plus tax times 3 makes very little difference. Usually a couple of pennies.

Hope this helps.
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