Complete your VAT Reconciliation report after you start with VAT
Learn how to complete your VAT Reconciliation when you're a new organisation, or you've recently registered for VAT after using Xero for a while. We'll use an example to show how it works.
Before you start, learn how Xero builds the VAT Reconciliation report, and where the figures come from.
- You start a new business on 1 May 2016. You use Xero from that date.
- You are registered for VAT with HMRC on the accruals basis.
- Your organisation lodges a VAT Return every quarter. Your first VAT Return will be for the quarter ended 30 June 2016.
Follow these 4 steps to understand how the reconciliation works.
- Complete your first VAT Return in Xero
- Run the VAT Reconciliation report
- Complete your second VAT Return in Xero
- Update the VAT Reconciliation report