Your VAT return is basically a calculation of the value-added-tax that needs to be paid to or in some cases reimbursed by the HMRC. If you are a VAT registered business then you will be required to file your VAT returns on a quarterly basis. Thanks to Xero filing your VAT returns online has never been easier. As a cloud-based accounting software, Xero is specifically designed to help small or medium sized businesses keep a track of their finances online. Because of the legal issues involved, you should always consult an expert before submitting your VAT returns. If you feel that you need help completing the process you can contact Xero customer service and seek additional assistance. You can also read through the steps and suggestions given in this article so that you can complete the VAT return process without any hassles.
Important Points before Preparing VAT Return
Here are some important points to keep in mind before you begin to prepare your VAT return in Xero:
· Be sure to go through all the transactions for the return period to make sure the information entered is accurate
· Run the bank reconciliation summary to make sure all the accounts are reconciled with the end if the return period.
· Create a general ledger report and verify any transactions that may appear on the Exceptions tab
· Double check the financial settings to certify your VAT details
· Publish the returns for any previous period according to the date
How to run your VAT Return?
If you have checked and verified all the transactions for the return period then you can follow the steps given below to run your VAT Return on Xero:
· Step 1: Open Xero and login in
· Step 2: Go to the Accounting menu and select ‘Reports’.
· Step 3: Look for the Tax section and click on ‘VAT Return’.
· Step 4: Choose the ending date of the return period and click ‘Update’
· Step 5: You have the option to save as a draft so that you can finish your return checks before the final submission.
· Step 6: If all the information is accurate you can click ‘File VAT Now’ to complete the process.
VAT Adviser Review
Before you finalize your VAT Return Xero recommends that you get it reviewed first. Any user in the organization who has adviser access can be asked to review the VAT Return. You can follow the steps given below to request a review:
· Go to the green window at the top of your VAT return
· Select the highlighted option that reads “ask your adviser to review this return.”
· Choose an adviser from the list given, type your message and click ‘Send’.
If you need the VAT Return for future reference you can export it using Google sheets or Microsoft Excel. If you have any trouble preparing your VAT Return on Xero you should contact Xero technical support and ask for help. A team of professional Xero experts is available 24 hours a day to provide quality technical assistance to resolve any VAT error you may encounter on Xero.
Source URL: How to do VAT return in Xero