VAT Audit Report
The VAT Audit Report is part of the VAT Return or Flat Rate VAT Return. It shows the transactions that make up the VAT charged or paid by your organisation – invoices, bills, expense claims, credit notes, bank transactions, and manual journals. Your user role determines whether you can view and create reports.
Open the VAT Audit Report
- Generate the VAT Return or Flat Rate VAT Return.
Click the VAT Audit Report tab.
(Optional) Click Wide view at the top of the report to display all columns. You can scroll across to view them.
(Optional) Click a Reference or Account column link to view the transaction details.Manual journals - The Show journal on cash basis reports check box must be selected for the journal to show on cash basis reports.
(Optional) Click the arrow on any link to add a footnote.Once added, the link shows a footnote number. Click it to go to the footnote at the bottom of the report.
Xero saves and exports the VAT Audit Report with the VAT Return. Xero doesn't include the VAT Audit Report when you submit your VAT Return or Flat Rate VAT Return to HMRC.
How Xero compiles the VAT Audit Report
Xero follows these rules when compiling the report:
- Transactions are included on the cash or accruals basis, according to your selected VAT scheme.
Xero groups transactions according to their tax rate.
- Transactions that are 'No Tax' or transactions that have line items set to 'No VAT' will still be listed on the VAT Audit report in the 'No VAT' section. This is a useful reference when checking that all the transactions you expect to be included in your VAT Return have been correctly accounted for.
Late claims (if any) show under a special section for the applicable tax rate. For example, '20% (VAT on Income) Late Claims' will appear separately from '20% (VAT on Income)' transactions in the same reporting period.
If you adjust the VAT on a transaction, each adjusted VAT amount appears in a separate separate Adjusted section for the rate.