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How to sync VAT rates in Xero

Anna Dziurosz avatar
Written by Anna Dziurosz
Updated this week

By syncing VAT rates with Xero, all VAT rates are made available in Moss via API. These rates can then be assigned to all expenses. After doing so, there is no need to manually add or edit them on the Moss platform.

You also benefit from an improved pre-accounting process through the assigning default VAT rates to suppliers.

VAT rates are required for the booking of company expenses and to track the VAT paid for company purchases. VAT rates depend on the product or service purchased. In the case of international purchases, reverse charges might apply.

Note: Only expense VAT rates are relevant in Moss. Income VAT rates are not relevant for spend and cannot be exported from Moss, although they are displayed on the VAT rate list. Please make sure to only select relevant rates for pre-accounting. In Xero, VAT rates are referred to as Tax Rates.

Set up process:

How-to: Sync VAT rates from XERO

  1. Click on “Accounting” on the left side menu.

  2. Click on “VAT Rates” to open the VAT Rates list in Moss.

  3. In order to sync VAT rates from Xero, click “Sync now”.

Using the “Not VAT registered” flag

Moss takes this parameter from Xero while syncing. If you want to switch to “Not VAT registered”, first apply the changes in the Xero platform. Then, when back on the Moss platform, click “Sync Now” to apply the same VAT settings.

Overwrite VAT amounts when exporting to Xero

You can now overwrite VAT amounts before exporting to Xero. This allows Moss to send the gross, net, and VAT values exactly as entered, without recalculation.

This is useful when:

  • A receipt includes multiple VAT rates, but the full amount is booked to the same cost centre or GL code

  • There are rounding differences between calculated VAT and what appears on the supplier receipt

  • You want to avoid splitting line items unnecessarily for smaller receipts and/or posting to the same GL code

How to Enable VAT Overwrite

This feature is available to all Xero-connected organisations and can be enabled in your Moss account settings:

  1. Go to Accounting

  2. Click into your Xero configuration

  3. Toggle on “Manual VAT override”

Once enabled:

  • Moss exports the VAT, net, and gross values as they appear in the transaction

  • The VAT rate is used only for tagging in Xero, not for calculating values

This helps prevent rounding mismatches and improves export accuracy.

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