Sales Tax Audit Report

The Sales Tax Audit Report is part of the Sales Tax Report and links to the Sales Tax Summary. It shows the transactions that make up the sales tax charged or paid by your organization. Your user role determines whether you can view and create reports.

Image of the Sales Tax Audit report.

About the audit report

The report defaults to the period and grouping options selected for the summary report. For example, grouped by tax rates, tax component or both.

  • Xero uses only one sales tax account. If you add sales tax accounts to your chart of accounts, any tax amounts assigned to them aren't included in the Sales Tax Report (the summary and audit).
  • The report includes transactions for the selected period based on the sales tax basis set in your financial settings.
  • Tax defaults to 0% on purchases. The column is hidden on bills and spend money transactions. Get advice from your accountant or bookkeeper if you're unsure how to record your tax.

 

Open the audit report

  1. Generate the Sales Tax Summary.
  2. Click the Sales Tax Audit Report tab.

    You'll see all sales tax transactions grouped for the period based on the summary report. Transactions with no tax or that are tax exempt (including any coded to the 'Sales Tax on Imports' account) are grouped in the Tax Exempt section.

    If the summary was produced by someone with the Advisor user role, you might see extra information or notes.

  3. (Optional) Click Wide view at the top of the report to display all columns. You can scroll across to view them.

    Image showing wide view link.

  4. (Optional) Click a Reference or Account column link to view the transaction details.
  5. (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.

Depending on the report status and your role you can edit, publish, export, save or archive the full Sales Tax Report (the summary and audit). You can also file your return online.

If you export to Excel or Google Sheets, the summary and audit show on separate tabs. If you publish, Xero changes the dates to the next period. Once published, you can't edit the report but you can run it again.

The Reference column

The Reference column shows the source transaction reference:

  • Sales invoices show the invoice number.
  • Bills, expense claim receipts, spend money and receive money transactions show the reference (if any).
  • Expense claim payments show the payment reference first, and then the claim reference if it's a single claim. Otherwise, it'll be blank.
  • Customer credit notes show the credit note number. Refunds show the payment reference first and if there isn't one, the credit note number.
  • Supplier credit notes show the reference. Refunds show the payment reference first and if there isn't one, the credit note reference.
  • Invoices and bill payments show the payment reference first and then the number.
  • Manual journals shows the journal number that appears on a posted journal and the Journal Report.
  • Payslips and wage payable bills show the reference.