Manage VAT returns easily

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

Person holds tablet while looking at VAT returns through Xero.

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.

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    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
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    Review the individual transactions that make up the return

Flexible VAT rates

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

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    Set a rate as the default for accounts, contacts or items
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    Alter the VAT on any line item if needed
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    Add or edit some default VAT rates if required

Automated calculations

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

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    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 have no tax
A business owner uses VAT software to select the standard VAT rate for sales.

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.

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    Safe and secure
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    Cancel any time
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    24/7 online support

It’s made a really big difference in keeping my finances organised

Nubian Skin use Xero to manage their business finances

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