Manage VAT easily

Automatically calculate VAT on transactions, prepare VAT201 returns, and file them using the SARS e-Filing service.

A business owner reviews a list of the transactions that make up their VAT return.

eFile VAT returns to SARS

Auto-populate VAT201 returns ready for e-filing

Flexible VAT rates

Commonly used VAT rates are already set up.

Automated calculations

VAT on transactions is recorded for you.

eFile VAT returns to SARS

Automatically populate VAT201 returns so they're ready for e-filing from Xero and generate VAT audit reports.

  • Included
    Tax rates are mapped to the relevant fields in the VAT201 return
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    Review the different tax lines on the return before submitting it
  • Included
    Review the individual transactions that make up the return
A VAT201 audit report in Xero shows details of the transactions included in the VAT201 return.

Flexible VAT rates

Default VAT rates for sales and services come set up in Xero and are updated automatically.

  • Included
    Set a rate as the default for accounts, contacts or items
  • Included
    Alter the VAT on any line item if needed
  • Included
    Add or edit some default VAT rates if required
A list of VAT rates in the Xero application, with the pre-set standard rates highlighted.

Automated calculations

Xero calculates VAT on each line item in your invoices, quotes, purchase orders and bills.

  • Included
    The tax rate selected for each item is used to calculate VAT
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    VAT on a transaction can be tax inclusive or exclusive, or no tax
 A business owner selects the standard VAT rate for sales to be applied as the default for a specific item.

More about VAT returns

The VAT201 return automatically includes late claims – transactions you enter or alter after the VAT return for that period was finalised – from the date you start using the return in Xero.

See how late claims work

Xero has two tax rates specifically for recording the VAT you pay on imports, and taking it into account when calculating the VAT on your VAT201 return. You don't need to create a special account code or tax rate to separate VAT on imports from other VAT.

See how to record VAT on imports

View all your returns along with their status, date, and amount owing or owed. Xero retains historic VAT returns along with a full audit trail so it’s simple to look back and keep business records in Xero for at least five years as required by SARS.

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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