Customize sales tax rates
Default sales tax rates are set up, initially to 0%, for tax on purchases, sales, and imports, and tax exempt.
- Add or amend the default sales tax rates with Xero software
- Set up as many tax rates and components as required
- Alter the sales tax rate on any line item if needed
Calculate sales tax on each line item in your invoices, quotes, purchase orders and bills.
- The tax rate selected for each item is used to calculate sales tax
- Sales tax on a transaction can be tax inclusive or exclusive, or no tax
- Set up default rates for contacts, inventory items, and accounts
Prepare sales tax returns
Run the sales tax report to gather information for completing sales tax forms for a selected tax period.
- Get a summary of taxes by rate, component or account type
- View an audit report on sales tax with Xero software
- Sales tax figures can be generated using the cash or accrual basis