How to Change Tax Rate on Invoice in Xero

Applying the correct tax rate when managing invoices in Xero is critical for staying compliant and accurate with your bookkeeping. But what if you need to update the tax rate on multiple invoices simultaneously? Doing it manually can take hours.

That’s where SaasAnt Transactions comes in. It simplifies bulk updates, including invoice tax rate changes, helping you save time and avoid errors.

In this step-by-step guide, we’ll show you how to change the tax rate on invoices in Xero using SaasAnt Transactions—quickly, safely, and in bulk.

Why You Might Need to Change Tax Rates on Invoices

Before we dive into the how-to, here are some common reasons users update tax rates:

• A change in local or international tax laws (e.g., VAT, GST).

• A mistake was made when creating the invoice.

• Your business started selling taxable goods or services.

• You’re migrating from one accounting method to another.

No matter the reason, doing this manually in Xero can be repetitive. Bulk editing with a tool like SaasAnt Transactions is a game-changer.

What You’ll Need Before You Begin

Before updating the tax rate on your invoices, make sure you have the following ready:

• Access to your Xero account with the proper permissions.

• A SaasAnt Transactions subscription (the tool works with Xero).

• A CSV file with the updated invoice data, including new tax rates.

• A clear understanding of the tax codes used in Xero.

Step-by-Step: How to Change Tax Rate on Invoice in Xero Using SaasAnt Transactions

Step 1: Export Your Invoices from Xero

To update tax rates, you need to work on your invoice data in a spreadsheet:

1. Log in to your Xero account.

2. Go to Business > Invoices.

3. Export the invoices you want to update in CSV format.

4. Open the file in Excel or Google Sheets.

This file will include columns like invoice number, contact name, item description, quantity, amount, and current tax rate.

Step 2: Edit the Tax Rate in the CSV File

Now, locate the Tax Rate column in your CSV file.

• Replace the current tax codes with the correct ones from Xero.

• Double-check that each invoice line item has the right tax rate.

Pro tip: Use Xero’s tax codes exactly as they appear in your account. Misspellings or incorrect codes will result in errors during import.

Once you're done, save the file in CSV format.

Step 3: Log in to SaasAnt Transactions

1. Go to SaasAnt Transactions.

2. Log in using your credentials.

3. Connect your Xero account (if you haven’t already).

You’ll be redirected to your SaasAnt dashboard.

Step 4: Upload the Updated CSV File

1. In the SaasAnt dashboard, select Import.

2. Choose Xero as your connected app.

3. Under the document type, select Invoices.

4. Upload your updated CSV file with the new tax rates.

Step 5: Map the Fields

SaasAnt will ask you to map the fields in your CSV to Xero fields.

Make sure the following fields are mapped correctly:

• Invoice Number

• Contact Name

• Line Item Details

• Amount

• Tax Rate (this is the key one)

Use the Auto-Mapping feature if available, but double-check manually.

Step 6: Preview and Validate the Data

Before final import, SaasAnt gives you the option to preview your data:

• Check for any validation errors.

• Make sure the tax rates appear as intended.

• If something looks off, go back and fix the CSV file.

Step 7: Import the Invoices into Xero

Once everything looks good:

1. Click Import to push the invoices with updated tax rates into Xero.

2. Wait a few seconds—SaasAnt processes bulk data quickly.

3. You’ll get a success message once the import is complete.

Step 8: Verify in Xero

Head back to Xero and open a few of the updated invoices to confirm:

• The tax rates have changed correctly.

• The tax amounts and totals recalculate as expected.

If something didn’t work as planned, use SaasAnt’s Import History to roll back or troubleshoot.

Benefits of Using SaasAnt Transactions for Tax Rate Updates

• Bulk Updates: Change hundreds of invoices in minutes.

• Accurate Mapping: Reduce errors with smart field matching.

• Undo Function: Roll back changes with a few clicks.

• Time-Saving: Eliminate the need to open each invoice manually.

Common Mistakes to Avoid

• Wrong tax codes: Always use valid Xero tax rates.

• Incorrect invoice numbers: SaasAnt matches by invoice number, so keep them consistent.

• Missing required fields: Other fields must be present even if you only update tax.

Final Thoughts

Changing the tax rate on invoices in Xero doesn’t have to be a chore. With SaasAnt Transactions, you can make accurate, bulk updates in just a few minutes. Whether correcting errors or adjusting to new tax rules, this method keeps your financials clean and compliant, without the manual work.