Things to check when completing your VAT Return
Review these items when you're compiling your VAT Return to make sure it's correct.
Have you published your previous VAT Returns?
Publishing your VAT Return locks it in Xero. Publishing a return also ensures that Xero can calculate any late claims for that return period on future returns. Make sure your previous periods' VAT Returns are published before you work on this period's return.
Have you reviewed the VAT Audit Report?
Review the VAT Audit Report to check:
- All transactions you expect to see in the return are included.
- There are no transactions in the return which shouldn't be there. For example, an incorrectly dated bill or invoice.
- All transactions have the correct VAT rate. For example, there shouldn't be any sales transactions with a VAT on Expenses tax rate.
Have you included late claims?
If you approved, edited, voided or deleted transactions in Xero after you published the VAT Return for that period, you can choose to include these transactions as late claims on your current VAT Return. Review these transactions on the VAT Audit Report.
Have you coded transactions posted directly in the VAT account correctly?
When you code a transaction directly to the VAT account with the tax rate 'No VAT', Xero:
- Excludes the transaction from the VAT Return.
- Includes the transaction in the VAT Reconciliation report in the section VAT Account Transactions.
Check with your accountant or bookkeeper that you've coded transactions to your VAT account correctly.
Have you paid VAT on an imported purchase?
When you pay an invoice that's solely for VAT on an imported purchase, use the tax rate 'VAT on imports' so Xero accounts for the VAT correctly.
Have you coded manual journals correctly for VAT?
Review all manual journals for the period to ensure VAT is correct.
(Cash basis) Have you selected to show manual journals on cash basis reports?
If you want Xero to include the VAT from a manual journal in your VAT Return and VAT Reconciliation report, make sure you select Show journal on cash basis reports on your journal.