[Due for payment 2026-04-01] [Due for payment 2026-03-30] [$250] Tax - Tax is no longer valid error shown in IOU details after editing tax rate value

@joekaufmanexpensify

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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:

Sign in to ND
Create a workspace, enable Taxes in More features
Open Taxes page, add a new tax rate, setting the tax value to something greater than 0
Navigate to the workspace chat and create an expense, selecting the tax rate from step 3
Verify that the tax rate and tax amount are displayed correctly in the expense details
Navigate to the workspace settings and change the value for the used tax rate
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 There is an error on the rate tax rate field telling you it's no longer valid.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dTax field shows the updated value, but there is an error "Tax no longer valid".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:

Platforms Tested:

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

Screenshots/Videos

Add any screenshot/video evidence

Bug6980011_1760985190594.Tax_rate_not_valid.mp4

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Upwork Job URL: https://www.upwork.com/jobs/~021981443480364943722
Upwork Job ID: 1981443480364943722
Last Price Increase: 2025-12-18
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huult | Contributor | 109911258

Issue Owner

Current Issue Owner: @

Issue Owner

Current Issue Owner: @joekaufmanexpensify

@joekaufmanexpensify

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.

@zsgreenwald

@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?

@joekaufmanexpensify

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 😅

The tax rate IS updated but to a totally random one, neither the existing or the default
The tax amount isn't updated
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:

Flag tax rate as being invalid
Don't change the amount
Flag the tax amount as also being invalid (maybe?)
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 ?

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)

@hasib711

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

Flag tax rate as being invalid

Don't change the amount

Flag the tax amount as also being invalid (maybe?)

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.

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.

Updated OP to reflect that

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

That's reasonable, I am good with that 👍

Regression test issue: https://github.com/Expensify/Expensify/issues/618015

@huult

Payment Summary

Contributor: @huult due $250 via Upwork
Contributor+: @thesahindia due $250 via NewDot

@huult

@huult $250 sent and contract ended

@thesahindia

@thesahindia please request payment at your earliest convenience. Closing as this is otherwise all set 👍

@huult

Did the PR from here cause a regression? If so, pay should be reduced. If not, provide reasoning. @huult @thesahindia

[Due for payment 2026-04-01] [Due for payment 2026-03-30] Expense - Disabled tax rate appears twice when submitting expense from self DM #85652 (comment)

@thesahindia

@thesahindia is currently OOO, so I’ll step in to help collect and re-share the relevant information.

These are regression issues caused by our PR:
#85652
#85730
#85729

He is explained in this comment: #73033 (comment)

FYI @mallenexpensify

@mallenexpensify

Yes. It was quite an involved issue with a lot of discussion to align on the correct solution, so it felt reasonable to me not to reduce based on that. Let me know if you have concerns with that @mallenexpensify

@thesahindia

$250 approved for @thesahindia

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[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 #73033

Action Performed:

Expected Result:

Actual Result:

Workaround:

Platforms:

Screenshots/Videos

Proposal

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

What is the root cause of that problem?

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

What alternative solutions did you explore? (Optional)

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[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 #73033

Description

Action Performed:

Expected Result:

Actual Result:

Workaround:

Platforms:

Screenshots/Videos

Activity

melvin-bot commented on Oct 20, 2025

joekaufmanexpensify commented on Oct 21, 2025

heyjennahay commented on Oct 21, 2025

hasib711 commented on Oct 21, 2025

Proposal

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

What is the root cause of that problem?

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

What alternative solutions did you explore? (Optional)

melvin-bot commented on Oct 21, 2025

hasib711 commented on Oct 21, 2025

melvin-bot commented on Oct 21, 2025

joekaufmanexpensify commented on Oct 22, 2025

joekaufmanexpensify commented on Oct 23, 2025

melvin-bot commented on Oct 23, 2025

165 remaining items

joekaufmanexpensify commented on Mar 30, 2026

joekaufmanexpensify commented on Mar 30, 2026

joekaufmanexpensify commented on Mar 30, 2026

Payment Summary

joekaufmanexpensify commented on Mar 30, 2026

joekaufmanexpensify commented on Mar 30, 2026

mallenexpensify commented on Mar 30, 2026

huult commented on Mar 31, 2026

joekaufmanexpensify commented on Mar 31, 2026

garrettmknight commented on Jul 28, 2026

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