Any government owned and affiliated corporations are also subject to Value Added Tax. This section can be found on Schedule 4 (Input Tax on Sale to Govt. ) of your VAT form.

To access Schedule 4, you first need to create a transaction in your Xero account then use tax rates pertaining to "sales to government". In this example I used Sales to Government (Goods) (12%).

STEP 1: You need to create a transaction in your Xero account then use the tax rates pertaining to "sales to government"

Note: In this example we used Sales to Government (Goods)  (12%)

STEP 2: After you had paid the invoice you can go back to your JuanTax account, and once you've generated a report, you'll notice that in the Summary tab, the Input Tax on Sale to Govt close to expense section is now editable. Click the Edit Schedule 4 button to continue.

STEP 3: In the Input Tax Attributable to Sale to Government window, you need to enter the amounts in the text boxes then hit Calculate
STEP 3A: Once finished, click Save button for those numbers to appear in your VAT report

You can refer to this article to learn more about the formulas needed in completing Schedule 4 of your VAT report.

Did this answer your question?