Your current tax rate settings within Lightyear are taking any VAT listed on invoices and grossing it up into the document's Grand Total Amount.

Lightyear applies the default tax rate setting at the company or supplier level, which overrides any tax present on the invoice. This ensures that incoming invoices from a particular supplier automatically use the correct tax rates.

Navigate to your Lightyear Settings > Accountancy > Tax Rates

Click on the green pencil icon to edit your current default tax rate settings.

If you need to add any additional tax rates, click on the green "Add" button and

create a new tax code. The new tax code must exactly match the tax code that has been set up in WCBS. Alternatively, you can create the necessary tax rate in your accounting system (e.g., WCBS) and sync it into Lightyear to ensure consistency.

Untick the box for "Supplier Rate Differs?" and confirm the changes

Now you will be able to set your new 20% Standard tax rate as the new "Default Tax" code using the tick box. Don't forget to save your changes after selecting your new default tax code.

For all subsequent invoices uploaded into Lightyear, your new default tax rate will be applied for line items with 20% VAT, and your default tax-free rate will be applied for line items with 0% VAT. Lightyear’s Smart Extract feature can also capture and apply multiple VAT/tax rates on a single invoice, provided the rates are clearly labeled.

For any invoices already in your Approvals workflow, if you wish to apply your new tax settings, select the invoice and click on More > Reapply Map.

This will refresh the invoice data and apply your new default tax settings.​

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