Submit a VAT return online in minutes

More about VAT

Use VAT software that’s compatible with Making Tax Digital for 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

Manage sales and purchases from abroad

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

Keep records of your statements and returns

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

Apply domestic reverse charge VAT automatically

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