Reverse Charge VAT Calculator
The reverse charge is not "reverse VAT". To take VAT out of a VAT-inclusive price, use the VAT calculator's reverse mode.
When you buy B2B services from a supplier abroad, you usually account for the VAT yourself. Enter the net price, your country's rate and the share of VAT you can deduct: the calculator shows the VAT to declare, the VAT to deduct, your net VAT cost and what you pay the supplier. The invoice wording is quoted below from the official texts.
Your reverse charge
- VAT to declare (output VAT)
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- VAT you can deduct (input VAT)
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- Net VAT cost to you
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- Amount payable to the supplier
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- Total cost of the purchase
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UK VAT Return entries (VAT Notice 700/12, paragraph 4.6)
The calculation runs in your browser; the amounts you enter are not sent anywhere.
How the math works
VAT to declare = net × rate ÷ 100
VAT to deduct = VAT to declare × deductible % ÷ 100
net VAT cost = VAT to declare − VAT to deduct · the supplier is paid the net price only.
How the reverse charge works in the EU (B2B services)
Two articles of the VAT Directive do the work. First, the service is taxed where the business customer is:
"The place of supply of services to a taxable person acting as such shall be the place where that person has established his business."
Second, when the supplier is not established in that Member State, the customer pays the VAT:
"VAT shall be payable by any taxable person, or non-taxable legal person identified for VAT purposes, to whom the services referred to in Article 44 are supplied, if the services are supplied by a taxable person not established within the territory of the Member State."
Articles 44 and 196 are the general B2B rule. Articles 46 to 59a set exceptions for particular services, for example services connected with immovable property (Article 47) or admission to events (Article 53), so check those first (Title V, Chapter 3 on EUR-Lex). Before you rely on a customer's VAT number, check it in the Commission's VIES service.
The customer then deducts the VAT under the normal rules: Article 168 allows deduction "in so far as the goods and services are used for the purposes of the taxed transactions of a taxable person", and Article 173 limits a business with both taxed and exempt transactions to "such proportion of the VAT as is attributable to the former transactions". That proportion is the percentage you enter above.
What the supplier's invoice must say (EU)
| Requirement | Official text | Article |
|---|---|---|
| The mention | "where the customer is liable for the payment of the VAT, the mention 'Reverse charge'" | 226(11a) |
| Customer's VAT number | "the customer's VAT identification number, as referred to in Article 214, under which the customer received a supply of goods or services in respect of which he is liable for payment of VAT, or received a supply of goods as referred to in Article 138" | 226(4) |
| VAT rate and amount | A supplier not established in the Member State where the tax is due, supplying a customer who is liable for the VAT, "may omit the details referred to in points (8), (9) and (10) of Article 226 and instead indicate, by reference to the quantity or extent of the goods or services supplied and their nature, the taxable amount of those goods or services" | 226a |
| Deadline | For Article 138 goods and Article 196 services, "an invoice shall be issued no later than on the fifteenth day of the month following that in which the chargeable event occurs" | 222 |
| Recapitulative statement | The supplier lists "the taxable persons, and the non-taxable legal persons identified for VAT purposes, to whom he has supplied services other than services that are exempted from VAT in the Member State where the transaction is taxable and for which the recipient is liable to pay the tax pursuant to Article 196" | 262(1)(c) |
Source: Directive 2006/112/EC, EUR-Lex consolidated text of 14.04.2025 (the latest consolidation listed on EUR-Lex), retrieved 2026-09-25.
In French. The French version of Article 226, point 11 bis, reads: "lorsque l'acquéreur ou le preneur est redevable de la TVA, la mention «Autoliquidation»" (EUR-Lex, version française). Other languages: switch the language on EUR-Lex.
Dated changes (ViDA). Directive (EU) 2025/516 replaces point (11a) from 1 July 2030 with: "where the customer is liable for the payment of the VAT, the mention “Reverse charge”, and in the case of a supply of goods for which the customer is liable to pay VAT pursuant to Article 197, additionally the mention “triangular transaction”". From the same date the Article 222 deadline for Article 138 goods and for supplies where the customer pays the VAT under Articles 194 to 197 becomes "no later than 10 days following the chargeable event" (from 1 July 2028 the current 15th-day rule is first extended to Article 194). Member States apply these dates through national law (Directive (EU) 2025/516).
UK: services from abroad, then the domestic reverse charge
Services received from a supplier outside the UK
"You simply credit your VAT account with an amount of output tax, calculated on the full value of the supply you've received, and at the same time debit your VAT account with the input tax to which you're entitled, in accordance with the normal rules."
"If you can attribute the input tax due under the reverse charge to your taxable supplies (and so can reclaim it in full) then the reverse charge has no net cost to you. If you cannot attribute the input tax due (because, for example, you make exempt supplies) the effect is to make you pay VAT on the supply at the UK rate."
HMRC also notes that the reverse charge applies "if your supplier belongs outside the UK even if they have a UK VAT registration number" (paragraph 5.1), and that it "does not apply to exempt services" (paragraph 5.5).
Domestic reverse charge: building and construction services
When supplying a service subject to the domestic reverse charge, HMRC says suppliers must:
- "show all the information required on a VAT invoice"
- "make a note on the invoice to make it clear that the domestic reverse charge applies and that the customer is required to account for the VAT"
- "clearly state how much VAT is due under the reverse charge, or if this amount cannot be shown, state the rate of VAT, but do not include the VAT in the amount charged to the customer"
"The VAT regulations 1995 say invoices for services subject to the reverse charge must include the reference 'reverse charge'." Examples of wording that meet the requirement: "VAT Act 1994 Section 55A applies", "S55A VATA 94 applies", "Customer to pay the VAT to HMRC".
On the return, the same guide says: "Suppliers must not enter any output tax on sales under the reverse charge. The supplier only needs to enter the net value of the sale." Customers "must add the VAT charged to the output tax total" and "may reclaim the input tax on your reverse charge purchases, subject to the normal VAT rules". It also says: "You cannot use the VAT Cash Accounting Scheme for supplies or services you buy or sell that are subject to the reverse charge."
| Case | Supplier fills in | Customer fills in |
|---|---|---|
| International services (and gold) | box 6 (value of the supply) | box 1 (output VAT), box 4 (input VAT), box 6 (value of the deemed supply), box 7 (purchase value) |
| Domestic reverse charge (for example building and construction services) | box 6 (value of the supply) | box 1 (output VAT), box 4 (input VAT), box 7 (purchase value) |
Source: VAT Notice 700/12, paragraph 4.6 (updated 19 December 2025), retrieved 2026-09-25.
Worked example
A business in France buys consulting services for €2,000.00 from a supplier established in another Member State. The French standard rate in our verified data is 20% (source: BOFiP - impots.gouv.fr (DGFiP official bulletin)).
| Line | Fully taxable business (100%) | Business deducting 80% |
|---|---|---|
| Paid to the supplier | €2,000.00 | €2,000.00 |
| VAT to declare (20%) | €400.00 | €400.00 |
| VAT to deduct | €400.00 | €320.00 |
| Net VAT cost | €0.00 | €80.00 |
| Total cost of the purchase | €2,000.00 | €2,080.00 |
The 80% is an example input, not a suggested figure. The supplier's invoice shows €2,000.00, the customer's VAT number and the mention "Reverse charge" (in French, «Autoliquidation»).
Making a reverse-charge invoice with our VAT generator
- In the VAT invoice generator, enter the customer's VAT number in the "Client's Tax ID / VAT Number" field and set the VAT rate to 0.
- Tick the "Reverse charge" box. The PDF then prints "VAT Reverse Charge applies. Customer to account for VAT." The note prints only when that box is ticked.
- At a 0% rate the VAT row stays on the PDF and shows 0.00.
- For the UK domestic reverse charge, HMRC also wants the VAT due (or the rate) stated: type it into Notes, together with a wording such as "S55A VATA 94 applies".
The generator is free and unmetered for normal use; an anti-abuse cap of 20 PDFs per device per day (200 per IP) applies, and blank template file downloads are not metered. A one-line "Created free with myinvoicetemplate.com" credit is switched on by default and one free checkbox in the settings turns it off. Your draft is stored in your own browser on this device, so download and keep the PDF you need.
Reverse charge FAQ
Is reverse VAT the same as the reverse charge?
No. "Reverse VAT" usually means taking VAT out of a VAT-inclusive price (net = gross ÷ (1 + rate)). The reverse charge is a rule about who pays: the customer, not the supplier, accounts for the VAT. For the first, use the reverse mode of our VAT calculator; this page is for the second.
How do you calculate the reverse charge?
Multiply the net price charged by the supplier by your country's VAT rate. That is the VAT you declare as if you had made the supply. You then deduct the part you are entitled to recover under your normal deduction rules. If you can deduct it all, the two amounts cancel and the net VAT cost is 0; the supplier is paid the net price only.
What must a reverse charge invoice say?
In the EU, Article 226(11a) of Directive 2006/112/EC requires the mention "Reverse charge", and Article 226(4) requires the customer's VAT identification number. For the UK domestic reverse charge in construction, HMRC says invoices "must include the reference 'reverse charge'" and gives example wordings such as "S55A VATA 94 applies".
Does the supplier show VAT on a reverse charge invoice?
The supplier does not charge it. Under Article 226a of the VAT Directive, a supplier not established in the customer's Member State may leave out the VAT rate and amount and show the taxable amount instead. For the UK domestic reverse charge, HMRC asks the supplier to "clearly state how much VAT is due under the reverse charge, or if this amount cannot be shown, state the rate of VAT, but do not include the VAT in the amount charged to the customer".
Where do reverse charge amounts go on a UK VAT return?
For services received from abroad, VAT Notice 700/12 says the customer fills in box 1 (output VAT), box 4 (input VAT), box 6 (value of the deemed supply) and box 7 (purchase value). For the domestic reverse charge in construction the customer fills in boxes 1, 4 and 7, and the supplier enters the value of the supply in box 6.
How do I check a customer's EU VAT number?
Use the European Commission's VIES service (ec.europa.eu/taxation_customs/vies/). Article 138(1) makes the 0% intra-EU supply of goods depend on the customer being identified for VAT in another Member State and having given you that number.
Does this calculator send my figures anywhere?
The calculation runs in your browser; the amounts you enter are not sent anywhere. Google Analytics receives the calculator type and the VAT rate used, not your amounts.
Not tax advice. The calculator does arithmetic on the figures you enter. Whether the reverse charge applies, the rate and the share you may deduct depend on the facts and on your country's law. The quotes above were checked against the linked official pages on 2026-09-25.