Reverse Charge VAT Calculator
When you receive services from a business based outside the UK, you must account for VAT yourself using the reverse charge mechanism. This calculator shows you exactly what to enter on your VAT return.
Enter the amount in GBP (convert foreign currency at the rate on the invoice date)
⚠️ This is for guidance only. The reverse charge rules are complex — always verify with HMRC or a qualified accountant, especially if partially exempt.
What is the Reverse Charge?
The Principle
Normally, a supplier charges VAT. But when you buy services from an overseas supplier who is not VAT-registered in the UK, there's no UK VAT on the invoice.
HMRC uses the "reverse charge" to ensure VAT is still accounted for. You (the UK customer) both charge yourself VAT (output tax) and reclaim it (input tax) — so it's VAT-neutral if you're fully taxable.
Common Examples
- 💻 Software subscriptions from US companies (e.g., Adobe, Salesforce)
- 🎨 Freelance design work from EU designers
- 📣 Facebook/Google advertising
- 🔧 IT consulting from overseas firms
- 📊 Professional services from abroad
Construction Domestic Reverse Charge
From March 2021, there is also a domestic reverse charge for certain construction services within the UK under the CIS scheme. This calculator covers overseas services only.
Does it Apply to Goods?
The reverse charge for services is different from import VAT on goods. For goods coming into the UK, use the Import VAT Calculator instead.