Manage VAT easily
Automatically calculate VAT on transactions and prepare VAT201 returns in line with SARS requirements.
Flexible VAT rates
Commonly used VAT rates are already set up.
Automated calculations
VAT on transactions is recorded for you.
Auto-populate VAT returns
Populate VAT201 returns ready to be submitted.
Flexible VAT rates
Default VAT rates for sales and services come set up in Xero and are updated automatically.
- Set a rate as the default for accounts, contacts or items
- Alter the VAT on any line item if needed
- Add or edit some default VAT rates if required
Automated calculations
Xero calculates VAT on each line item in your invoices, quotes, purchase orders and bills.
- The tax rate selected for each item is used to calculate VAT
- VAT on a transaction can be tax inclusive or exclusive, or no tax
Auto-populate VAT returns
Automatically populate VAT201 returns ready to be submitted and generate VAT audit reports.
- Tax rates are mapped to the relevant fields in the VAT201 return
- Review the different tax lines on the return before submitting it
- Review the individual transactions that make up the return
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 workXero 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 importsView 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.
- Safe and secure
- Cancel any time
- 24/7 online support
I find Xero’s interface really user friendly
Studio Banaa use Xero to look after their businesses finances
