How to Post a Journal with VAT on Xero

Updated 18 August 2021

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.

How to Post a Journal with VAT on Xero

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About Anita Forrest

Anita Forrest is a Chartered Accountant, spreadsheet geek, money nerd and creator of www.goselfemployed.co - a website full of templates, guides and resources for UK sole traders. No faff. No confusion. Just simple straightforward advice on business registration, taxes and bookkeeping.