Proper tax setup ensures accurate VAT codes and amounts on imported documents. This guide shows you how to configure tax correctly.
Why Tax Configuration Matters
Incorrect tax codes can cause:
- Wrong VAT amounts on invoices
- Compliance issues with HMRC
- Mismatched records between Dext and BrightBooks
Step 1: Enable Tax List Syncing
- Log into Dext Prepare
- Go to Connections > Integrations
- Toggle Use Tax List ON
- Save changes
This tells Dext to use the tax rates from your BrightBooks account.
Step 2: Set Default Tax Codes
After enabling Use Tax List, select:
Default Tax for Costs:
Choose the VAT code you use most for supplier invoices (usually 20% VAT on Purchases).
Default Exempt Tax Code:
Choose the code for VAT-exempt or reverse-charged items.
Step 3: Know Your BrightBooks Tax Codes
Common codes include:
- 20% VAT on Purchases
- 20% VAT on Sales
- 5% VAT (reduced rate)
- 0% VAT / Exempt
- Reverse Charge
Ask your accountant which codes you should use.
Step 4: Fix Tax Codes on Documents Before Publishing
- Open a document in Dext (To Review status)
- Check the Tax Code field
- If incorrect, click dropdown and select the correct code
- Click Save/Publish
Step 5: Fix Incorrect Tax After Importing
If tax codes are wrong after import:
- Correct tax settings in Dext (see Step 1-2)
- In Dext, Unarchive the incorrectly taxed documents
- Delete those documents from BrightBooks
- Republish from Dext with corrected tax codes
Troubleshooting Common Tax Issues
All documents have wrong VAT:
Check if Use Tax List is ON. Verify default tax codes are correct. If you recently changed rates in BrightBooks, refresh the integration in Dext.
Some documents show 0% when they should show 20%:
Dext may have misread the document or marked it as exempt. Manually change the tax code before publishing.