Manage and calculate sales tax

Automatically calculate sales tax on transactions, and use reports to prepare sales tax returns.

Person holding tablet while calculating sales tax through Xero.

Customise VAT rates

Set up as many VAT rates as you need.

Automated calculations

The VAT on transactions is recorded for you.

Prepare VAT returns

Use the sales tax report to complete a return.

Customise VAT rates

Default VAT rates are set up, initially to 0%, for tax on purchases, sales, and imports, and tax exempt.

  • Included
    Add or amend the default tax rates
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    Set up as many tax rates and components as required
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    Alter the tax rate on any line item if needed
List in Xero showing sales tax, tax exempt and tax on goods.

Automated calculations

Calculate VAT on each line item in your invoices, quotes, purchase orders and bills.

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    The tax rate selected for each item is used to calculate sales tax
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    Sales tax on a transaction can be tax inclusive or exclusive, or no tax
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    Set up default rates for contacts, inventory items, and accounts
Sales tax calculator in Xero for tax on consulting.

Prepare VAT returns

Run the sales tax report to gather information for completing VAT forms for a selected tax period.

  • Included
    Get a summary of taxes by rate, component or account type
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    View an audit report with sales tax software to see the individual transactions
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    Sales tax figures can be generated using the cash or accrual basis
Sales tax software showing sales tax summary.

Start using Xero for free

Access all Xero features for 30 days, then decide which plan best suits your business.

  • Included
    Safe and secure
  • Included
    Cancel any time
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    24/7 online support

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