Tax compliance is a major responsibility for businesses, and Xero add-ons make it easier to stay on top of VAT, GST, and other reporting requirements. Tools like Taxomate, Avalara, and AutoEntry integrate directly with Xero to automate tax data capture, categorisation, and reporting. These apps streamline the process of filing VAT returns, especially under Making Tax Digital (MTD) regulations in the UK. You can prepare and submit returns directly from within the platform, ensuring compliance and reducing the chance of penalties. For e-commerce businesses, tax add-ons calculate multi-country VAT or sales tax accurately based on customer location. Document scanning tools such as Dext or Hubdoc also help capture receipts and extract tax data automatically, ensuring nothing is missed. The result is faster, more accurate tax preparation and submission. These tools also help during audits by providing a clear digital trail of all transactions. With tax rules constantly changing, using the right add-ons with Xero gives you peace of mind, ensures accuracy, and keeps your business compliant—without the manual workload.