VAT incorrectly set for bank transaction explanation


Using the API I created a bank transaction explanation to explain my mobile phone payments.

I set the category to “Mobile phone”, which is a “normally VATable” category.

Had I been using the web interface I would have set the VAT to “Auto”; but the sales tax docs say you don’t need to specify a manual_sales_tax_amount or a sales_tax_rate if you just want the VAT of your category, so I didn’t specify either one. (Admittedly the docs are for expenses and bills, but I assume they apply to bank transaction explanations too.)

FreeAgent created the explanations but set each’s sales tax to 0% – not 20%.

Is this expected behaviour? Or should I specify the sales_tax_rate when creating explanations with Auto VAT?

Many thanks in advance :slight_smile:

Andrew Stewart

I have found that when I do specify an Auto sales tax rate, everything works as expected.

So presumably the sales tax docs for expenses and bills don’t apply as written to bank transaction explanations.

Hi @Andrew_Stewart,

Ah yes, the documentation seems confusing here. I can see we call out Expenses, Bills and Invoices explicitly, but not Bank Transaction Explanations. We’ll look to get this updated soon. Thanks for pointing this out!