Complete your VAT Reconciliation report after you start with VAT
Complete your VAT Reconciliation report if you're starting a new business or have just registered for VAT. We'll use an example to show you how it works.
Before you start, see 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 two steps to understand how reconciliation works.