Submitting your VAT return from Xero
How your VAT return is submitted - explained
Your VAT return is built automatically in Xero from the transactions you have entered. We review the figures, present them for your approval, and submit directly to HMRC via Making Tax Digital.
The VAT return screen
Go to ‘Accounting’, then ‘Tax’, then ‘VAT Returns’. Your current open return period is shown with the figures populated from your transactions. Box 1 shows output VAT, Box 4 shows input VAT, and Box 5 shows the net amount to pay. We review this screen before submission.
Approving the return
Once we present the return for review, check that Box 6 (total sales) and Box 7 (total purchases) look consistent with what you have invoiced and spent in the quarter. If anything looks wrong, tell us before approving. After your approval, we submit to HMRC and forward you the confirmation.
💡 Good to know: The VAT return can only be submitted for periods where all transactions are fully reconciled. If your bank has outstanding unmatched transactions, the return figures may be incomplete. Complete your bank reconciliation before we start preparing each return.
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