Tax groups allow employees to select the applicable tax rate while creating an expense. Sage Expense Management uses the selected tax group to calculate the tax component of the expense.
Add a tax group
Navigate to Admin Settings > Expenses > Taxes.
Click Add Tax Group.
Enter a name and tax percentage for the group.
Click Add Tax Group to save it.
Once added, the tax group becomes available for employees to select on their expense forms.
Using an accounting integration?
If your organization uses the Sage Expense Management integration with Sage Intacct or QuickBooks Online, you can sync tax groups directly from your accounting system instead of adding them manually.
Edit, enable, or disable a tax group
To edit a tax group:
Click the tax group you want to modify.
Make the required changes.
Click Update Tax Group.
Use the toggle beside a tax group to control its availability:
Select Yes to enable the tax group.
Select No to disable the tax group.
Disabled tax groups will no longer be available for employees to select on new expenses.
How taxes are calculated on expenses
Employees should always enter the full expense amount, inclusive of taxes. When an employee selects a tax group, Sage Expense Management uses the tax rate to reverse-calculate the tax component from the tax-inclusive expense amount.
Employees should review the calculated tax amount and confirm that it matches the receipt.
Why might the calculated tax differ from the receipt?
The tax amount shown on a receipt may differ from the amount calculated by Sage Expense Management for several reasons. Common scenarios include:
Only certain line items on the receipt are taxable, or different line items are taxed at different rates.
The receipt total includes a tip, while tax is calculated only on the expense amount before the tip.
If the calculated tax does not match the receipt, you can use one of the following approaches.
Split the expense
If your organization needs to capture individual portions of the expense and their corresponding taxes accurately, split the expense into separate portions. Apply the appropriate tax group to each portion.
This is useful when different line items have different tax treatments or tax rates.
Override the calculated tax amount
If your organization only needs to capture the total tax paid for the expense, the employee can manually change the system-calculated tax amount to match the receipt.
Sage Expense Management retains both the system-calculated amount and the amount entered by the employee. When an employee modifies the tax:
A Tax modified indicator appears on the expense details page.
Admins and approvers can identify expenses on which the tax was manually changed.
The expense audit trail records changes to the tax amount.
This provides visibility into manual tax adjustments and helps admins and approvers verify expenses against their receipts.
Review tax changes in the audit trail
The expense audit trail records tax-related activity for organizations in all regions.
For each tax-related change, the audit trail captures:
Who made the change, including the user’s name and email address, or whether it resulted from an automated update.
When the change occurred, including the date and time.
What changed, such as the selected tax group, the original and updated tax amounts, and whether the tax was manually overridden or automatically recalculated.
The context of the change, including tax updates made while creating, editing, splitting, or merging an expense.
Admins and approvers can use this information to understand how the current tax amount was determined and verify changes against the receipt.
Single-tax limitation
Sage Expense Management currently supports only one tax group or tax rate per expense or split expense portion.
Dual-tax and multi-tax configurations commonly required in regions such as Canada are not supported.
Tax extraction from receipts
Automatic tax extraction from receipts is currently available only for organizations with GBP as their home currency. Admins must configure default tax groups before Sage Expense Management can auto-fill tax information from receipts.
For setup instructions and supported VAT rates, see Set default tax groups for UK tax rates.
Contact support
Need help setting this up? Reach out to us at [email protected], and we’ll be happy to assist you.
Frequently asked questions
Is the expense amount entered inclusive or exclusive of tax?
Employees should enter the full amount paid, inclusive of tax. Sage Expense Management reverse-calculates the tax component using the selected tax group.
What should I do if the calculated tax does not match the receipt?
You can split the expense and apply the appropriate tax group to each portion, or manually override the calculated tax amount to match the receipt.
Can employees override the calculated tax amount?
Yes. Employees can manually update the tax amount. The expense will display a Tax modified indicator, and the change will be recorded in the audit trail.
What tax information is recorded in the audit trail?
The audit trail records who made the change, when it occurred, and what changed, including the original and updated tax amounts and changes to the selected tax group.
Can multiple taxes be applied to one expense?
No. Sage Expense Management supports only one tax group or tax rate per expense or split expense portion. Dual-tax and multi-tax configurations are not supported.
Can tax groups be imported from an accounting system?
Yes. Organizations using the Sage Expense Management integration with Sage Intacct or QuickBooks Online can sync supported tax groups from their accounting system.
Is tax information automatically extracted from receipts?
Tax extraction is currently available only for organizations with GBP as their home currency. Default tax groups must be configured before tax information can be automatically filled in from receipts.