Since expensify calculates taxes on the total amount if there is tip from a restaurant, the taxes will be wrong (because tips is put on top of the total with taxes). How can we deal with this?
Hi @Alina_D Welcome to the Expensify Community!
If you are using Expensify with Tax Tracking and you have tips, I recommend you add the tip as a separate expense with a zero-rated tax code.
The only way to report expenses with multiple tax rates is to separate them into multiple components, each with a different tax rate,
I hope that makes sense!
@Alina_D @RachCHopkins - using separate expenses lines isn't the only way to manage multiple tax rates and tips. I work in Europe a lot and just about every restaurant bill has multiple tax rates as food and alcohol are frequently taxed at different rates. I manually edit the bill amount to include the tip and then manually edit the tax amount to be the total amount paid on the invoice.
This doesn’t allow you see how much of each tax rate you paid – so it won’t work if that’s the need, however if you are doing it to track VAT (European purchase tax) it works fine. You get tons of hieroglyphics on the report for the edits which is annoying if 70%+ of your receipts are like this, but it works.
PS Using rules to change the tax rate on a submitted receipt is broken. E.g. my lunch bill never has alcohol on it, (even in France!) so I have a rule set to select the low tax rate for food receipts. It doesn’t work and last time I asked there was no estimated fix date.
Thanks so much for your input @Ian_Thorne!!
Also, I'll chase up your issue.
@RachCHopkins - I realise there's a risk I'll hijack this thread - but is there any update on the Rules not changing Tax Levels bug ?