Xero makes filing your GST returns simple. It's an electronic process, so there's minimal likelihood of human error!
Xero takes the transactions you've reconciled and automatically calculates the GST component in the GST return. Inland Revenue only receives the information in the GST return, not the underling transaction.
Below are the relevant steps for filing your return, taken from Xero's website, which probably contains more information than you need.
- In the Accounting menu, select Reports.
- Under Tax, click GST Return.
- Create, save, and finalise your GST return within Xero - help on doing this is here.
When you've completed and reviewed the GST return and you're ready to file it, under the Save menu select Save Final.
Click File Now with IRD.
Xero will take you to the myIR login portal. Enter your myIR login and password. When myIR accepts your login, Xero uploads your GST return data.
If you have GST to pay, pay it from your business bank account. When reconciling, please record the transaction to the code GST, not as other income.