File a VAT return in minutes

Xero calculates VAT, prepares and files returns securely with HMRC using software that’s compatible with HMRC systems.

A breakdown of the transactions that make up the VAT totals on a VAT return display on a tablet.

VAT calculated for you

VAT is worked out and included in returns.

Manage VAT transactions

See return transactions with the VAT audit report.

File VAT returns

Submit returns compatible with MTD for VAT.

VAT calculated for you

Use Xero to calculate VAT as you go, and populate your return so at VAT return time you’re ready to file.

  • Work with the standard, flat rate, or cash VAT scheme
  • Review VAT returns in a clear, easy-to-understand layout
  • File VAT reports that are compatible with Making Tax Digital
The VAT return screen shows a return being submitted to HMRC.

Manage VAT transactions

Accurately track and manage VAT in Xero.

  • See details of the transactions that make up the VAT return
  • Make adjustments to VAT on transactions like invoices and bills
The VAT audit report lists the amount of VAT on each sale for the month.

File VAT returns

View and check MTD or non-MTD VAT returns and file them from Xero to HMRC – no need to print or email.

  • Check what needs doing, what’s done, and how much is due
  • Submit VAT quickly and securely to HMRC each period
  • Stay up to date with the latest HMRC requirements
A customer gives a thumbs up at being able to file their VAT return directly to HMRC.

More about VAT

You can keep digital records and submit VAT returns digitally. If your business’s turnover is over £85k, you need to use MTD-compatible software – but many businesses with lower turnover are choosing to go digital too.

Read more about Making Tax Digital

If you buy or sell to businesses abroad, including the EU, Xero helps by assigning these transactions to the correct boxes in your HMRC VAT return. Xero also handles VAT reverse charges with ease.

See how Xero calculates the VAT return box amounts

Use Xero to keep business records for at least six years, as required by HMRC. Xero retains all your historic VAT returns along with a full audit trail making it simple to look back.

See how to view filed VAT returns

Xero automatically calculates and applies domestic reverse charge VAT and wording to your invoices and bills. Domestic reverse charge VAT applies to certain goods and services and, from 1 March 2021, it must also be used for most supplies of building and construction services.

Read more about domestic reverse charge

Start using Xero for free

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

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

I’ve got all my figures and my accounts at my fingertips. It’s brilliant.

Dan uses Xero to run his business

Dan from the Old Hall Inn uses Xero to run his business