How to Generate Accurate VAT Reports in Xero – Even Without FTA Accreditation
Watch Dexter Destajo, owner of LiveSync Accounting:
If you’re managing VAT filings in the UAE or other GCC countries, you know how important it is to keep your records organized and submission-ready. Xero, while not yet accredited by the UAE’s Federal Tax Authority (FTA), still offers a powerful and efficient way to generate VAT reports and compile data for your VAT return.
Step-by-Step VAT Reporting in Xero:
Xero’s Sales Tax Report is your go-to tool for VAT reporting. Once your tax rates and reporting periods are properly set up, you can run a report that summarizes:
- Sales and purchases by region (e.g., Dubai and Abu Dhabi)
- VAT on expenses and reverse charge mechanisms (RCM)
- Net VAT payable for the reporting period
This summary helps you prepare your VAT return by copying the appropriate figures into the FTA VAT return form. Xero automatically calculates your VAT liability, including input and output tax, and supports RCM entries.
Exporting for Compliance:
Although Xero is not yet FTA-accredited, you can easily export the VAT report to Excel. The export includes:
- Summary tab with net figures
- Detailed tab listing every transaction and invoice
This ensures full traceability in case of an audit. If the FTA requests supporting documents, you can simply filter the transactions by region or tax rate and download the relevant invoices.
Pro Tip:
Always store the exported Excel files as your official supporting documents. Xero simplifies the process, but the downloadable reports provide the audit-proof trail you need.
Current Limitation:
Xero is still awaiting FTA accreditation, which means the data must be manually entered into the FTA portal. However, the system still streamlines your workflow and organizes your VAT reporting efficiently.
Conclusion:
Even without direct FTA integration, Xero remains a powerful VAT management tool. It saves time, reduces errors, and helps accountants confidently prepare VAT reports with a solid audit trail. For firms and SMEs in the UAE, it’s an essential part of modern cloud-based accounting.
Need help configuring VAT in Xero? Contact LiveSync Accounting—we’re here to ensure your VAT reporting stays smooth and compliant.
