Error message
Failed to export expense. A VAT amount is not allowed if you use a VAT code of type 'No VAT' or 'VAT 0%'.Affected ERP integrations
Exact Online
Cause
This error occurs when you have selected a VAT code in Payhawk that is designated as No VAT or VAT 0% in Exact Online, but a custom VAT amount (greater than 0.00) has been entered for the expense in Payhawk.
Payhawk's logic for handling VAT amounts is as follows:
If you select a VAT code, Payhawk typically calculates and displays the appropriate rate, sending only the VAT code to Exact Online.
If you manually override the calculated VAT amount in Payhawk to a different value, Payhawk will send both the VAT code and the custom VAT amount to Exact Online.
When a VAT code that means no tax, such as No VAT or VAT 0%, is paired with a non-zero VAT amount, Exact Online identifies this as a discrepancy and blocks the export, as it's logically inconsistent to have a VAT amount when the rate is zero.
Solution
To resolve this issue:
In the Payhawk Web Portal, go to Expenses.
Click on the expense that failed to export.
Locate the VAT code and VAT amount fields.
If the expense truly has no VAT, ensure the selected VAT code in Payhawk is indeed a No VAT or VAT 0% type. Change the VAT amount to 0.00.
If the expense should have VAT, change the selected VAT code in Payhawk to an appropriate code that has a non-zero VAT rate configured in Exact Online. Adjust the VAT amount accordingly.
Save the expense and attempt to export it again.