Xero’s Making Tax Digital for VAT software

As an accountant or bookkeeper, you and your clients can become compliant with Xero’s Making Tax Digital for VAT software. 

It’s HMRC-recognised and available in all Xero plans that support VAT.

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person using making tax digital software

What is Making Tax Digital?

Making Tax Digital for VAT makes it mandatory for VAT-registered businesses above the £85k threshold to keep records and submit VAT returns digitally using HMRC-recognised software like Xero. It will become mandatory for all VAT registered businesses from April 2022.

Become compliant with Xero’s Making Tax Digital for VAT software

Xero’s Making Tax Digital software gives you and your clients greater control and visibility of your VAT with the assurance of being compliant and connected in real-time to HMRC.


Key features


Know which VAT returns are due


View history and notes


Post VAT returns in real time

transaction details

Drill down to transaction details

vat returns

View and adjust VAT returns


Deploy faster using Xero’s bridging software

Sign up to our partner programme to get your practice and clients set up for Making Tax Digital.

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Handle spreadsheets with Xero’s bridging software

For clients using spreadsheets, or with complex VAT requirements, there’s no need to change systems. All that’s needed to comply with HMRC is Xero’s Making Tax Digital for VAT bridging software – available in all Xero plans that support VAT.

making tax digital for vat

Upload your clients VAT figures directly from an Excel spreadsheet into Xero in seconds

making vat digital

Submit your clients VAT returns securely and in real-time to HMRC


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Is Xero’s Making Tax Digital software right for your clients?

Xero is so flexible that you can choose from a range of options. See which clients Xero's Making Tax Digital software supports.


Client VAT status:

  • VAT threshold above £85k

  • VAT threshold below £85k

  • Annual returns

  • Quarterly returns

  • Monthly returns

  • Standard scheme

  • Cash accounting scheme

  • Flat rate scheme

  • Partial exemption (with manual calculation and adjustment)

  • Specialist schemes (investigate specialist needs and seek advice)

  • VAT group (use Xero’s bridging software)

  • VAT division (use Xero’s bridging software)

  • Using Excel (use Xero’s bridging software)

Start using Xero Making Tax Digital software today by joining our partner programme

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Resources to get you started today

Get the latest updates and tools to help you and your clients with Making Tax Digital

mtd webinars
Learn about Making Tax Digital in Xero

Find out more on how to set up Making Tax Digital for VAT in Xero.

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Making Tax Digital FAQs

Gain a greater understanding of Making Tax Digital for VAT and what it means for you with these FAQs – and our answers.

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Move clients to Making Tax Digital software

Move clients to Xero from Sage and Quickbooks desktop and online products using Movemybooks today – it's easy and it's free.

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Xero’s Making Tax Digital software has saved us and our clients so much time”

Sian Kelly, Managing Director, Inform Accounting


Join the partner programme

Become a Xero partner and gain access to a dedicated account manager, educational resources and the tools to start your practice on its Making Tax Digital journey.

Learn more