Commonly used VAT rates are already set up.
VAT on transactions is recorded for you.
Populate VAT201 returns ready to be submitted.
Default VAT rates for sales and services come set up in Xero and are updated automatically.
Xero calculates VAT on each line item in your invoices, quotes, purchase orders and bills.
Automatically populate VAT201 returns ready to be submitted and generate VAT audit reports.
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.
Xero became a really critical tool for us as we took on more staff.