diff --git a/src/formatting/formatters/v2-xml-formatter.ts b/src/formatting/formatters/v2-xml-formatter.ts
index 3f85734..e6d21b7 100644
--- a/src/formatting/formatters/v2-xml-formatter.ts
+++ b/src/formatting/formatters/v2-xml-formatter.ts
@@ -5,7 +5,18 @@ import { ClassicXmlFormatter } from "./classic-xml-formatter";
 /* tslint:disable no-use-before-declare */
 export class V2XmlFormatter implements XmlFormatter {
     formatXml(xml: string, options: XmlFormattingOptions): string {
-        xml = this.minifyXml(xml, options);
+        // remove whitespace from between tags, except for line breaks
+        xml = xml.replace(/>\s{0,}</g, (match: string) => { // spaces between the node name and the first attribute
+            return match.replace(/[^\S\r\n]/g, "");
+        });
+
+        // do some light minification to get rid of insignificant whitespace
+        xml = xml.replace(/"\s+(?=[^\s]+=)/g, "\" "); // spaces between attributes
+        xml = xml.replace(/"\s+(?=>)/g, "\""); // spaces between the last attribute and tag close (>)
+        xml = xml.replace(/"\s+(?=\/>)/g, "\" "); // spaces between the last attribute and tag close (/>)
+        xml = xml.replace(/[^ <>="]\s+[^ <>="]+=/g, (match: string) => { // spaces between the node name and the first attribute
+            return match.replace(/\s+/g, " ");
+        });
 
         let output = "";
 
@@ -133,15 +144,15 @@ export class V2XmlFormatter implements XmlFormatter {
             else if (location === Location.Text && cc === "<" && nc === "/") {
                 indentLevel--;
 
-                // if the end tag immediately follows another end tag, add a line break and indent
                 // if the end tag immediately follows a line break, just add an indentation
+                // if the end tag immediately follows another end tag, add a line break and indent
                 // otherwise, this should be treated as a same-line end tag(ex. <element>text</element>)
-                if (lastNonTextLocation === Location.EndTag) {
-                    output += `${options.newLine}${this._getIndent(options, indentLevel)}<`;
+                if (pc === "\n") {
+                    output += `${this._getIndent(options, indentLevel)}<`;
                 }
 
-                else if (pc === "\n") {
-                    output += `${this._getIndent(options, indentLevel)}<`;
+                else if (lastNonTextLocation === Location.EndTag) {
+                    output += `${options.newLine}${this._getIndent(options, indentLevel)}<`;
                 }
 
                 else {
diff --git a/src/test/extension.test.ts b/src/test/extension.test.ts
index 7f51b01..8d12984 100644
--- a/src/test/extension.test.ts
+++ b/src/test/extension.test.ts
@@ -40,6 +40,14 @@ describe("V2XmlFormatter", () => {
             testFormatter(xmlFormatter, options, "text-only-line");
         });
 
+        it("should handle preformatted xml", () => {
+            testFormatter(xmlFormatter, options, "preformatted");
+        });
+
+        it ("should preserve line breaks between elements", () => {
+            testFormatter(xmlFormatter, options, "preserve-breaks");
+        });
+
     });
 
 });
diff --git a/src/test/test-data/preformatted.formatted.xml b/src/test/test-data/preformatted.formatted.xml
new file mode 100644
index 0000000..6b3c12e
--- /dev/null
+++ b/src/test/test-data/preformatted.formatted.xml
@@ -0,0 +1,9 @@
+<root>
+    <element>text</element>
+    <element>text</element>
+    <element>text</element>
+    <element>text</element>
+    <element>
+        <element2>text</element2>
+    </element2>
+</root>
\ No newline at end of file
diff --git a/src/test/test-data/preformatted.unformatted.xml b/src/test/test-data/preformatted.unformatted.xml
new file mode 100644
index 0000000..6b3c12e
--- /dev/null
+++ b/src/test/test-data/preformatted.unformatted.xml
@@ -0,0 +1,9 @@
+<root>
+    <element>text</element>
+    <element>text</element>
+    <element>text</element>
+    <element>text</element>
+    <element>
+        <element2>text</element2>
+    </element2>
+</root>
\ No newline at end of file
diff --git a/src/test/test-data/preserve-breaks.formatted.xml b/src/test/test-data/preserve-breaks.formatted.xml
new file mode 100644
index 0000000..e8d02b4
--- /dev/null
+++ b/src/test/test-data/preserve-breaks.formatted.xml
@@ -0,0 +1,12 @@
+<root>
+    <element>text</element>
+    <element>text</element>
+
+    <element>text</element>
+    <element>text</element>
+
+    <element>
+        <element2>text</element2>
+    </element2>
+
+</root>
\ No newline at end of file
diff --git a/src/test/test-data/preserve-breaks.unformatted.xml b/src/test/test-data/preserve-breaks.unformatted.xml
new file mode 100644
index 0000000..e8d02b4
--- /dev/null
+++ b/src/test/test-data/preserve-breaks.unformatted.xml
@@ -0,0 +1,12 @@
+<root>
+    <element>text</element>
+    <element>text</element>
+
+    <element>text</element>
+    <element>text</element>
+
+    <element>
+        <element2>text</element2>
+    </element2>
+
+</root>
\ No newline at end of file