Adjust the tax amount on new transactions

Adjust a transaction's tax amount when you have a non-standard amount of sales tax. You might make an adjustment when goods are second-hand, or if you want to summarise different tax amounts on a single line.

What transactions can you make a tax adjustment on?

You can make a tax adjustment to these transactions when the amounts are tax exclusive:

  • Invoices and bills
  • Credit notes and prepayments
  • Spend and receive money transactions
  • Manual journals

Make a tax adjustment

  1. In your transaction, set Amounts are to Tax Exclusive.
  2. Click the Image of the plus icon. on the Tax Rate column to open up the Tax Amount column.

    Image showing the plus icon on the Tax Rate column.

    Opening up the Tax Amount column on one transaction show the column on any subsequent Tax Exclusive transactions a user in your organisation creates.

  3. Enter your non-standard amount in the Tax Amount column. Xero adds a line above the transaction total to display the adjustment amount.

    Image showing tax adjustment amounts.

  4. Save the transaction.

Only the amount in the Tax Amount column displays on your invoice or credit note, including PDF and online versions. The amount you've adjusted sales tax by won't be noted.

How are tax adjustments included in sales tax reports?

On the Sales Tax Summary all sales tax totals include adjustments to tax you have made. They are not displayed separately.

In the Sales Tax Audit Report each adjusted sales tax amount appears in a separate 'Adjusted' section for the rate:

Tax showing on Audit Report with 'Adjusted' in tax rate name.