Reverse Charge VAT Calculator

What is Reverse Charge VAT?

The reverse charge mechanism shifts the responsibility for reporting VAT from the supplier to the customer. This typically applies in cross-border transactions within the EU or for specific domestic sectors like construction or telecommunications.

When the reverse charge applies, the supplier doesn't charge VAT on their invoice. Instead, the customer both charges and reclaims the VAT on their VAT return (effectively canceling out the VAT in most cases).

Calculate Reverse Charge VAT

Invoice Amount (without VAT):

Please enter a valid amount

Select Country:

Please select a country or custom rate

Custom VAT Rate (%):

Please enter a valid VAT rate

Results

VAT Amount: €0.00

Total Amount (incl. VAT): €0.00

VAT Rate Applied: 0%

How to Record This Transaction:

As the customer in a reverse charge scenario:

Record the purchase without VAT in your accounts
Calculate and include the VAT amount shown above in Box 1 of your VAT return (VAT due on sales)
Also include the same VAT amount in Box 4 (VAT reclaimed on purchases) - this means the net effect is usually zero
Include the net amount in Box 7 (total sales excluding VAT) and Box 6 (total purchases excluding VAT)

Note: Specific requirements may vary by country. Always consult with a tax professional for your specific situation.