Smart VAT Calculator

Calculate UK and EU VAT rates, including automatic B2B Reverse Charge and OSS assessments for cross-border digital services.

£
Calculation Mode
Customer Type

Tax Breakdown

Rate Classification
20% (United Kingdom Standard)
Net Amount (Exclude Tax)
£1,000.00
VAT Amount
+ £200.00
Total Gross Pay
£1,200.00

Next steps

PDF includes reference number, UTC timestamp, tax rule applied, and full breakdown. For audit evidence only.

What is the VAT Reverse Charge?

The Reverse Charge is a tax mechanism designed to shift the liability for statutory VAT reporting from the supplier to the customer. This simplifies cross-border trade between businesses (B2B) in the UK and the European Union post-Brexit.

If you provide digital services, software, or consultancy to a VAT-registered business in another Member State, you do not charge UK VAT. Instead, the receiving business self-assesses and pays their local VAT equivalent. You must include on your invoice: "This invoice is subject to the Reverse Charge mechanism."

B2C Transactions: When you sell digital services directly to an EU consumer, the Reverse Charge does not apply. You must charge the consumer's local VAT rate, managed via the One Stop Shop (OSS) scheme.

Registering for EU VAT (OSS/IOSS Scheme)

Register for the non-Union OSS scheme to avoid registering for VAT in all 27 EU member states independently.

Domestic VAT — stay ahead of filing deadlines

Submit Your MTD VAT Return

Connect your accounting data and file your Making Tax Digital VAT return in one click.

Generate a Compliant VAT Invoice

Must include your VAT number, tax point date, and separate net/VAT amounts. Use our invoice builder.

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