Xero software is compatible with HMRC systems, and you can calculate VAT and file VAT returns securely. It includes transactions from the same account in the VAT return. The tax rates and VAT scheme determine your transactions in the Xero VAT Return process. Xero offers MTD and non-MTD VAT returns. You can use the VAT tax rate to calculate the tax for each line. The software is designed to report taxes for a single tax authority. But, you can customise the settings to report taxes to other authorities.
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