With using DomDocument class.

 

Like this:

<?
$sXML = '<root><element><key>a</key><value>b</value></element></root>';
$doc = new DOMDocument();
$doc->preserveWhiteSpace = false;
$doc->formatOutput = true;
$doc->loadXML($sXML);
echo $doc->saveXML();
?>

From here.