VAT Reconciliation report for standard VAT
The VAT Reconciliation report for standard VAT compares VAT on VAT Returns you've published against VAT on sales and purchases, and against your VAT account balance. It shows any unfiled amounts not captured in a published return in Xero, and filed amounts you haven't settled with HMRC. The VAT Reconciliation report is not designed to work for Flat Rate VAT.
Run this report after you publish a standard VAT Return to check for unfiled and unpaid amounts. Run it again at the end of the financial year to reconcile the VAT account balance in your Balance Sheet.
Before you start
Check you've published your VAT Returns for the period you want to reconcile.
Run the VAT Reconciliation report
Xero creates the report on the accruals or cash basis for the default period, according to the options selected in Financial Settings.
- In the Reports menu, select All Reports.
(If this is the first time you've run this report) Under the Tax heading, click VAT Reconciliation.
(If you've run this report for previous periods) Go to the Drafts tab and open the most recent saved draft of this report.
(Optional) Change the From or To date, then click Update.Select a From date that gives opening balances of 0 on your report. See the worked examples for further details.
- (Optional) Click Add Summary to add a note to the report.
- Review each section of the report.
- When you complete the report, Save as Draft to retain the figures you enter for each VAT period.
You can export the report to Microsoft Excel, PDF or Google Sheets at the end of each VAT period to save a snapshot at that point in time.
Here are some worked examples using this report: