In today’s product update we have released important tax additions for our UK-based and global customers.
Firstly, set the tax rates for each individual contact you deal with. You can now assign default tax rates to customers and suppliers, and enter their tax number. This will be useful for you if you have customers or suppliers that don’t use your normal tax rate, ie. because they are exempt or they’re in another country. When you enter your customer’s tax number it will automatically display on any invoices you raise for that customer.
Also today, we have updated Xero’s support for VAT tax codes for EC sales and purchases. UK customers now have two additional tax codes to record zero-rated EC sales and purchases. Additional tax codes can be added for other EC transactions that include VAT and for other sales and purchases made within the UK but with a special VAT rate. Each tax rate will be properly accounted for in the VAT return and audit report.
Read the full release notes for more details.