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VAT - Automatically calculate VAT using the Marginal Scheme

Ability to automatically calculate VAT using the marginal scheme.

Purpose: To easily show correct VAT amounts when VAT is only charged on the Margin between Purchase price and Selling Price.

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AdminXero Team (Admin, Xero) shared this idea  ·   ·  Report…  ·  Admin →
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Not in pipeline  ·  AdminKelly Munro (Community Manager, Xero) responded  · 

Hi team, thanks for the support and interest this idea has gained. Though we appreciate the value auto calculating VAT using the marginal scheme would be for those that need it, we want to be transparent here that this isn't in our roadmap.

Currently, it's possible to adjust VAT on invoices and credit notes - If you set the transaction to Amounts are 'Tax exclusive' and make sure the Tax Amount column is shown you'll be able to click into this field and edit the amount as needed for each line of your invoice - we have more detail on this in Xero Central.

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  • Sarah Verge commented  ·   ·  Report

    I've set up a new VAT codes to manage this. The relevant transactions then appear together on the VAT return report and I can manually adjust the VAT return.

  • Nathaniel Gordon commented  ·   ·  Report

    This would be great, but as it is such a niche area, would be interested in the ideas people have for managing this in their Xero set ups.

  • Christian Somerville commented  ·   ·  Report

    Do we know if there is anything specifically for Margin Scheme from Xero in the pipeline as an update?

  • Gavin Barlow commented  ·   ·  Report

    Hi. This option for the manual adjustment does not exist in 'new invoicing' and apparently isn't currently seen as a feature for development. This is key for doing margin scheme adjustments

  • Marc Mulcahy commented  ·   ·  Report

    Xero please add the margin scheme into your software to make life easier and quicker. Manual calculations are ok occasionally but its a bit tedious

  • Diana Stalior commented  ·   ·  Report

    TOMS- tour operators marginal scheme
    it would be great that Xero support this VAT scheme.

  • Paul Cavanagh commented  ·   ·  Report

    you can currently do this on xero using the old customer invoicing tab but this getting retired on the 1st September 2024

  • Gemma Dyer commented  ·   ·  Report

    Margin scheme invoice without showing VAT to customer as this shows the VAT on the profit made, and we do not want to show the customer the profit made. Currently preparing invoices separately and uploading with margin information to Xero afterwards.

  • Julie Romain commented  ·   ·  Report

    Had a couple of clients lately who would greatly benefit from this, please create the option, ideally popping the required wording on the invoice but not the VAT. Currently doing manual journals.

  • KIRSTIE BAKER commented  ·   ·  Report

    Xero please write the margin scheme into your software to make life easier and quicker. Manual calculations are ok occasionally but its a bit tedious when processing large volumes of sales.

  • Michelle Brooks commented  ·   ·  Report

    This will mean the difference between my clients who specialise in second hand markets using Xero (or not!)

  • Michael James commented  ·   ·  Report

    Support for the margin scheme should be easy to implement and would save so much manual time and effort as well as addressing the required record keeping for HMRC. If done properly it would certainly increase number of companies using Xero.

  • Roy Brown commented  ·   ·  Report

    I am sure there are many Xero users that need this! It cannot be functionality that would be difficult for Xero to implement.

  • Aimee Gilmore commented  ·   ·  Report

    This would be super useful for clients who are using the margin scheme

  • Roy Brown commented  ·   ·  Report

    This is very important to my clients who buy and sell top end cars. This is a standard HMRC VAT scheme which should be included as a core functionality of Xero.

  • Ashley Taylor commented  ·   ·  Report

    Is there an update with regard to the VAT calculations?

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