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UK VAT.

I have recently installed LedgerSMB for the first time. I am at the
start of the road. I have changed the VAT. rate to reflect current UK.
changes. It tells me it has been saved. However when I enter an AP. it
does not apply the rate when I update. The manual directs me to
System->Defaults but I can find no reference to VAT. there. Has this
been superceded or have I done something wrong. Please can you direct me
towards more detailed instructions.
Paddy Walker