Easily submit VAT returns online

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

Tablet showing a VAT return online. Displays breakdown of the transactions that make up VAT totals.

VAT calculated for you

VAT is worked out and included in returns.

Manage VAT transactions

View VAT transaction details and make adjustments.

File 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 accrual, 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 returns that are compatible with Making Tax Digital

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
Learn more about MTD

File VAT returns online

View and check 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

More about VAT

You can keep digital records and submit VAT returns online using Xero. If you are VAT registered, you need to use MTD-compatible VAT software like Xero.

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 seven 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

VAT display in Short Term Cash Flow

Automatically view the impact of your businesses VAT requirements, sourced directly from HMRC, to see how this affects your cash position.

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Explore our Making Tax Digital resources

Our expert MTD guides, webinars, and FAQs cover everything you need to know about Making Tax Digital for VAT as a small business owner.

Explore our MTD resources for small businesses
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Start using Xero for free

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

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    Safe and secure
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    Cancel any time
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    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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