Posting a Journal with VAT on Xero

To post a journal on Xero with includes VAT that needs to be picked up on the VAT return:

  1. Go to Manual Journal
  2. Select amounts are tax inclusive
  3. Post your journal choosing the required tax rates and Xero will work out the VAT and post that to the VAT control account.

Alternatively, select amount as tax exclusive so that you can enter the VAT amounts manually.

Anita is a Chartered Accountant, turned blogger and creator of the ever popular free Go Self Employed Email Mini Course, which has been completed by hundreds of attendees all over the UK. Using her 10 years experience in accounting, tax and operations for Small Businesses, Anita is on a mission to make finance simple for the self employed, so they can stop stressing about tax & finances and focus on building profitable businesses which will give them the lifestyle they dream of.