Easily submit VAT returns online

Xero calculates VAT and files VAT returns online 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

View VAT transaction details and make adjustments.

Submit VAT returns online

Submit returns compatible with MTD for VAT.

VAT calculated for you

Use Xero to calculate VAT on transactions, populate and submit VAT returns online with HMRC.

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    Work with the standard, flat rate, or cash VAT scheme
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    Review VAT returns online in a clear, easy-to-understand layout
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    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.

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    See details of the transactions that make up the online VAT return
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    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.

Submit VAT returns online

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

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    Check what needs doing, what’s done, and how much is due
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    Submit VAT returns online quickly and securely to HMRC
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    Stay up to date with the latest HMRC VAT return 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 online using Xero. If your business’s turnover is over £85k, you need to use MTD-compatible VAT 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 domestic reverse charges with ease.

See how Xero calculates the VAT return box amounts

As required, Xero keeps business records for at least six years. Xero retains all your historic HMRC 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.

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

I find Xero’s interface really user friendly

Studio Banaa use Xero to look after their businesses finances

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