[Due for payment 2026-04-01] [Due for payment 2026-03-30] [$250] Tax - Tax is no longer valid error shown in IOU details after editing tax rate value

[lanitochka17]

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Version Number: 9.2.34-0
Reproducible in staging?: Y
Reproducible in production?: Y
If this was caught during regression testing, add the test name, ID and link from TestRail: N/A

Action Performed:

1. Sign in to ND
2. Create a workspace, enable Taxes in More features
3. Open Taxes page, add a new tax rate, setting the tax value to something greater than 0
4. Navigate to the workspace chat and create an expense, selecting the tax rate from step 3
5. Verify that the tax rate and tax amount are displayed correctly in the expense details
6. Navigate to the workspace settings and change the value for the used tax rate
7. Navigate to the expense details and observe the Tax field and the Tax amount field

Expected Result:

The previous tax rate and amount are displayed in the Tax field and Tax amount field for the existing expense details after updating the tax value. There is an error on the rate tax rate field telling you it's no longer valid. Changing the tax rate resolves the error and updates the amount.

Actual Result:

dTax field shows the updated value, but there is an error "Tax no longer valid". The tax amount does not change accordingly to a new value. After selecting a different tax rate and returning to the updated one the error is not shown and the amount is calculated correctly

Workaround:

Unknown

Platforms:

Select the officially supported platforms where the issue was reproduced:

• Android: App
• Android: mWeb Chrome
• iOS: App
• iOS: mWeb Safari
• iOS: mWeb Chrome
• Windows: Chrome
• MacOS: Chrome / Safari
• MacOS: Desktop

Platforms Tested:

On which of our officially supported platforms was this issue tested:

• Android: App
• Android: mWeb Chrome
• iOS: App
• iOS: mWeb Safari
• iOS: mWeb Chrome
• Windows: Chrome
• MacOS: Chrome / Safari
• MacOS: Desktop

Screenshots/Videos

Add any screenshot/video evidence

Bug6980011_1760985190594.Tax_rate_not_valid.mp4

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Upwork Automation - Do Not Edit

• Upwork Job URL: https://www.upwork.com/jobs/~021981443480364943722
• Upwork Job ID: 1981443480364943722
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• huult | Contributor | 109911258

Issue Owner

Current Issue Owner: @

Issue Owner

Current Issue Owner: @joekaufmanexpensify

[melvin-bot]

Triggered auto assignment to @joekaufmanexpensify (Bug), see https://stackoverflow.com/c/expensify/questions/14418 for more details. Please add this bug to a GH project, as outlined in the SO.

[joekaufmanexpensify]

@zsgreenwald @heyjennahay @MonilBhavsar I see you worked on tax tracking. Is this a bug? I am not sure we want to automatically update the tax amount for existing expenses if you change the rate.

Perhaps the bug is that we do update the tax rate for existing expenses, and we should instead show the prior rate + amount (with the violation) unless you change the toggle the rate or something?

[heyjennahay]

Hmm I'm not sure if we actually considered this scenario.

If the tax rate use is disabled then I would expect to see the "Rate not valid" violation

Given the underlying tax rate itself is still active and just the amount is changed, I would expect that for editable expenses, the tax amount would be updated

Testing this in OldDot it also seems totally broken 😅

1. The tax rate IS updated but to a totally random one, neither the existing or the default
2. The tax amount isn't updated
3. The default tax message incorrectly states the default rate is one other than the one set in the workspace

My gut tells me that if a rate is changing that the user will create a new tax rate rather than modify the existing one which is probably why we never came across this bug before.

That said, I think we should treat the "old" version of the rate like an invalid tax rate so:

1. Flag tax rate as being invalid
2. Don't change the amount
3. Flag the tax amount as also being invalid (maybe?)
4. To resolve, the user should re-select the rate from the list then we set the "new" version of the tax rate and re-calculate the tax amount
   Which is effectively what we do now in ND.

The alternative is that we just update according to the new tax rate amount on expenses where it is allowed (i.e. prior to approval) and don't show that the expense had a different one applied. As long as updates are restricted to editable expenses then I don't think it's a huge problem and maybe would remove some confusion from users.

Thoughts @joekaufmanexpensify @MonilBhavsar @zsgreenwald ?

[hasib711]

Proposal

Please re-state the problem that we are trying to solve in this issue.

Update tax amount when tax rate was changed.

What is the root cause of that problem?

When the report information is displayed, we consider it to reflect the updated transaction.
However, we do not input the updated transaction.
App/blob/main/src/components/ReportActionItem/MoneyRequestView.tsx
Line 117

function MoneyRequestView({
   allReports,
   report,
   expensePolicy,
   shouldShowAnimatedBackground,
   readonly = false,
   updatedTransaction,
   isFromReviewDuplicates = false,
   mergeTransactionID,
   }: MoneyRequestViewProps) {

App/blob/main/src/pages/home/report/ReportActionItemContentCreated.tsx
Line 184

<MoneyRequestView
                                    allReports={allReports}
                                    report={transactionThreadReport}
                                    expensePolicy={policy}
                                    shouldShowAnimatedBackground={false}
                                />

What changes do you think we should make in order to solve the problem?

We need to input the updated transaction

What alternative solutions did you explore? (Optional)

[melvin-bot]

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[hasib711]

Contributor details
Your Expensify account email: hasibupwork711@gmail.com
Upwork Profile Link: https://www.upwork.com/freelancers/~015950e9572980f803

[melvin-bot]

✅ Contributor details stored successfully. Thank you for contributing to Expensify!

[joekaufmanexpensify]

That said, I think we should treat the "old" version of the rate like an invalid tax rate so:

1. Flag tax rate as being invalid
2. Don't change the amount
3. Flag the tax amount as also being invalid (maybe?)
4. To resolve, the user should re-select the rate from the list then we set the "new" version of the tax rate and re-calculate the
5. tax amount. Which is effectively what we do now in ND.

This makes sense to me and is what I was thinking here. To do this, we'd just need to not change the tax rate / amount on existing expenses when you update the rate, and continue showing the violation.

[joekaufmanexpensify]

Updated OP to reflect that

[melvin-bot]

Job added to Upwork: https://www.upwork.com/jobs/~021981443480364943722