Tax locations for UK VAT

Hi All,

We are trying to add tax calculations to expenses. I have added under Tax locations against federal tax 20% which is the current VAT applied in the UK.

However if a £100 expense is submitted the tax calculated is £16.667 which isn't the way UK tax is calculated, it should be £20.

Below is the explanation OA support has given for this calculation.

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1. As an example to make sure my understanding is correct if I submit an expense for £100 and the tax location is set up as 20% for federal tax what should the tax be on this expense?
- I will use $200 as an example. For a tax location that is 10%. -- The tax amount is 18.18. The total due is 200.00. The computation is base amount $181.82 multiply by 10% = 18.18.