Post-Brexit VAT Calculator: How to Calculate Reverse Charge VAT for Cross-Border Services
Navigating cross-border trade between the United Kingdom and European Union member states requires a precise understanding of international tax frameworks. Whether you are invoicing German B2B clients in Berlin or executing transactions under French VAT reverse charge rules in Paris, managing Value Added Tax (VAT) accurately is essential for legal compliance and avoiding audit penalties.
Using our client-side VAT calculator guarantees total privacy with a zero data retention architecture. All calculation logic executes locally in your browser, providing instant invoice breakdowns for UK and EU cross-border B2B and B2C transactions.
Reverse Charge B2B Invoice Calculator (UK / EU Rules)
When a UK business supplies cross-border services to an EU business customer, the place of supply is deemed to be where the customer is established. Under the standard General Rule for B2B services:
- UK Supplier Duty: Do not charge UK VAT on the invoice (0% VAT rate).
- EU Buyer Duty: The client accounts for VAT in their local country (e.g. 19% in Germany or 20% in France) via their local tax return.
Invoicing German B2B Clients
Under Paragraph 13b UStG of German tax law, reverse charge applies when invoicing German businesses with a valid USt-IdNr. Ensure the German client's VAT ID is verified on VIES before zero-rating.
French VAT Reverse Charge Rules
Under French Code Général des Impôts (Art. 283-2), French buyers self-assess French VAT on Form CA3. The invoice must clearly contain the exact reverse charge legal statement.
UK to EU B2B Invoice Template with Reverse Charge Text
Tax authorities like HMRC, the German Bundeszentralamt für Steuern, and French CNIL/DGFiP require explicit invoice phrasing. Simply showing a 0% tax line without explanation triggers audit warnings.
Required UK to EU Reverse Charge Invoice Phrase
Include this dynamic template note on all cross-border B2B invoices:
Temporary 5% UK VAT Rate Rules 2026
Between 25 June 2026 and 1 September 2026, the UK government established temporary 5% UK VAT rate rules for designated family and hospitality services. Using our calculator ensures you select the correct rate during this window to avoid overcharging clients or submitting flawed VAT return Box 1 entries.
Frequently Asked Questions (FAQ)
High-intent answers to UK-EU B2B VAT calculations, French/German tax compliance, and privacy rules.
How to calculate reverse charge VAT for cross-border services?
For B2B cross-border services supplied between the UK and the EU (such as invoicing German B2B clients or French buyers), the supplier does not charge VAT on the invoice (0% VAT rate). Instead, the customer accounts for both input and output VAT in their local tax return under the Reverse Charge mechanism. The invoice must explicitly state mandatory legal wording.
What is the UK temporary 5% VAT rate in 2026?
Between 25 June and 1 September 2026, the UK government implemented a temporary reduced VAT rate of 5% for specific family-oriented supplies, such as children's meals and admission to certain family attractions.
Is my invoice data saved when using this client-side VAT calculator?
No. This tool features a zero data retention architecture and operates 100% client-side. The tax calculations happen directly in your web browser using local CPU execution, ensuring total privacy and strict GDPR compliance.
What is the required UK to EU B2B invoice template text for reverse charge?
To satisfy HMRC, CNIL, and German tax authority audits, invoices subject to the Reverse Charge must state clear legal phrasing such as: "Reverse charge: Customer to account for VAT to their local tax authority." Omitting this exact wording can result in compliance penalties.
How do French VAT reverse charge rules differ from UK rules post-Brexit?
Under French VAT reverse charge rules, French B2B entities receiving cross-border services from UK companies must self-assess French VAT on their local VAT return (CA3 form). UK suppliers must verify the French client's intra-community VAT number (FR + 11 digits) via VIES.
What are the rules for invoicing German B2B clients post-Brexit?
When invoicing German B2B clients (USt-IdNr), UK service providers zero-rate the invoice under the Reverse Charge mechanism (Paragraph 13b UStG in Germany). The German business reports both 19% output and input VAT in their USt-Voranmeldung filing.
Do I need to verify my customer's EU VAT number for Reverse Charge?
Yes. To apply the Reverse Charge on B2B invoices, UK suppliers must obtain and verify the customer’s VAT identification number via the official VIES (VAT Information Exchange System) portal or HMRC system to prove B2B status.
How are physical goods taxed differently from digital services?
Physical goods exported from the UK to the EU are zero-rated for UK VAT, but import VAT and customs duties apply upon entering the EU. Digital services (like downloadable software, SaaS, or eBooks) to B2C customers follow place-of-supply rules requiring local destination VAT collection.
What is the One Stop Shop (OSS) and Non-Union OSS scheme?
OSS is an EU tax scheme allowing non-EU businesses (including UK sellers post-Brexit) to report and remit B2C VAT across all 27 EU member states through a single quarterly tax filing without registering for VAT in every individual country.
How do I account for Reverse Charge transactions on my UK VAT Return?
For UK suppliers providing services to EU B2B clients, the net sales value is recorded in Box 6 (Total Value of Sales) of the UK VAT return with zero VAT in Box 1. For UK buyers receiving EU services, Reverse Charge VAT is entered in both Box 1 (Output Tax) and Box 4 (Input Tax), resulting in a net-zero cash flow impact.