Sales Tax reporting in Xero can be performed in two modes:

  • Accrual Basis: Sales tax is paid on what is invoiced.
  • Cash Basis: Sales tax is paid only on payments collected.


If your marina pays sales tax on a cash basis, you need to follow the steps below.

  1. In Xero go to Settings --> General Settings.
  2. Click on Financial Settings.
  3. In the Sales Tax section, change the Tax Basis to Cash Basis.
  4. Click Save.
  5. Run the sales tax report under Reports --> Sales Tax Report.


Important Note: If your marina operates under Accrual accounting standards:

  1. When done with sales tax report, return to Settings --> General Settings.
  2. Click on Financial Settings.
  3. Change back to Accrual Basis.
  4. Click Save.