Duty & VAT Invoice Posting

For Xero only

Below are ways of dealing with a 100% VAT transactions as well as a VAT on Imports invoice.

You can enter a 100% VAT invoice by using two transaction lines.

To do this, you'll need to use the Tax Exclusive 'Amounts are' option when entering the invoice and:

1. In the first line, enter the total sales or purchase amount excluding VAT in the Unit Price field. Enter the relevant account code and tax rate.

2. In the second line, reverse the Unit Price amount by entering it again as a negative amount. Use the same account code as the line above, but select the Exempt tax rate for this line.

This will:

• Show a 100% VAT total on the invoice

• Have 0.00 effect on the account code balance.

Please note that both lines will show on the invoice PDF.

You can include VAT that you have been charged on imports in the appropriate box on your return by:

• Coding the total VAT amount, for the transaction to the VAT account code (820 in the default chart of accounts).

• Selecting the VAT on Imports Tax Rate.

Please see the link to Xero Central support article for more information on this.
Account for VAT on Imports