EU VAT Calculator — Find the Right Rate for Any Cross-Border Transaction

Why EU cross-border VAT isn't simple

A standard VAT calculator tells you 20% of €1,000 is €200. That's not what this tool does.

Cross-border VAT inside the European Union follows a different set of rules depending on four factors: whether your customer is a VAT-registered business or a private individual, what you're selling (physical goods, digital services, or telecommunications), which EU country your customer is in, and your annual turnover into that country relative to the OSS threshold.

Get any of those wrong and you're either overcharging your customer or underreporting to your tax authority.

B2B vs. B2C — the rule that changes everything

The single biggest variable in EU VAT is customer type.

B2B sales (business to business): When you sell to a VAT-registered business in another EU country, the reverse charge mechanism typically applies. You issue a zero-rated invoice, and your customer self-accounts for VAT in their own country. No VAT collected, no VAT paid — but you must verify their VAT number is valid before applying this treatment. Use the VAT Number Checker to confirm.

B2C sales (business to consumer): When you sell to a private individual, you must charge VAT. Which country's rate applies depends on whether your total annual sales to that country exceed its OSS distance selling threshold. Below the threshold, your home country's rate applies. Above it, the destination country's rate applies and you must register for OSS (One Stop Shop) or local VAT.

The calculator handles both scenarios. Select your customer type and it applies the correct rules automatically.

Digital services and the OSS threshold

For digital services — software, SaaS, downloadable content, streaming, online courses — the rules are stricter than for physical goods.

Under EU regulations in force since 2021, digital services sold to private consumers are always taxed in the customer's country, regardless of seller turnover. There is no minimum threshold for digital service providers selling B2C across the EU. You must either register for OSS in one EU country and report all EU-wide B2C sales through that single registration, or register for VAT individually in each country where you have customers.

The OSS system covers the following categories of digital services:

• Software supply and updates
• Website hosting and remote maintenance
• Images, text, databases, and digital content
• Music, films, games, and digital entertainment
• Distance learning and online courses
• Telecommunications services

If you sell any of the above to EU consumers and you're not already registered for OSS, this calculator will show you which VAT rate you should be collecting — and what you need to do about it.

How the reverse charge mechanism works

Reverse charge is the EU mechanism that prevents double taxation on cross-border B2B transactions. Instead of the seller collecting and remitting VAT, the buyer accounts for it in their own country.

When reverse charge applies, you as the seller:

• Issue an invoice without VAT
• Note "Reverse charge — VAT to be accounted for by the recipient" on the invoice
• Report the transaction in your EC Sales List (or equivalent in your country)

When it does not apply (and you must charge VAT instead):

• Your customer cannot provide a valid EU VAT number
• You are selling physical goods below the distance selling threshold to a private consumer
• Specific country exemptions apply to certain goods categories

The advanced calculator determines which situation applies to your transaction and outputs the correct invoice treatment. For B2B transactions, always verify the customer's VAT number first — use the VIES checker before you invoice.

Net and gross — add or exclude VAT

Once the correct VAT rate is determined, the calculator computes in both directions:

Add (net → gross): You know the pre-VAT price and need to calculate the total including VAT. Used when you're quoting a customer and need to show the VAT-inclusive price on the invoice.

Exclude (gross → net): You know the final price including VAT and need to extract the VAT component. Used when reconciling received payments or checking what VAT was embedded in a supplier invoice.

Results show the net amount, gross amount, and VAT value separately — in the currency you select.

EU VAT rates by country (2026)

VAT rates vary significantly across EU member states. Standard rates currently range from 17% (Luxembourg) to 27% (Hungary). Most countries also have reduced rates for specific goods categories — food, books, medicines, and cultural services are commonly taxed at 5–10% instead of the standard rate.

The calculator applies the correct standard or reduced rate based on your transaction type and customer country. You can also manually select a reduced rate if you're certain it applies to your product category.

Need to verify a VAT number first?

If you're applying reverse charge for a B2B sale, the customer's VAT number must be valid at the time of the transaction. An invalid or expired number means reverse charge doesn't apply — and you may be liable for the uncollected VAT.

Before you calculate, check the number is live: EU VAT Number Checker →

FAQ

Which EU countries does this calculator cover?
All 27 EU member states. The calculator applies each country's current standard and reduced VAT rates, distance selling thresholds, and any regional variations (such as the Canary Islands for Spain or the Azores and Madeira for Portugal).

What is the OSS threshold for selling into EU countries?
Since July 2021, the EU introduced a single €10,000 annual threshold across all EU countries combined for B2C distance sales of goods and digital services. Once your total cross-EU B2C sales exceed €10,000 in a calendar year, you must charge VAT at the destination country's rate and report via OSS. Below €10,000, you can apply your home country's rate.

Do I charge VAT on services to an EU business if I'm outside the EU?
If you're outside the EU and selling B2B services to an EU-registered business, the general rule is that the customer accounts for VAT via reverse charge in their country. You would not normally charge VAT on the invoice. However, the rules vary by service type and country — the calculator accounts for seller location as part of the wizard.

What's the difference between this and a standard VAT calculator?
A standard VAT calculator multiplies a known rate by an amount. This calculator first determines which rate applies — and whether VAT should be charged at all — based on your specific transaction. It's designed for cross-border EU invoicing, not domestic VAT arithmetic.

Can I use this for UK VAT after Brexit?
The UK left the EU VAT system on 31 December 2020. UK VAT rules no longer follow EU Directives. This calculator covers EU transactions only. For UK VAT on sales to EU customers, the rules depend on whether you're selling goods (customs/import VAT applies) or services (use and enjoyment rules apply). Consult HMRC guidance for UK-specific treatment.

What currencies does the calculator support?
The calculator accepts any amount and outputs results in the currency you select. VAT rates are always applied as a percentage, so the currency doesn't affect the calculation — only the display.

Do I need to register for OSS?
If you sell digital services to EU consumers from outside the EU, or if your total EU B2C sales exceed €10,000 annually, OSS registration is the most practical route. It lets you file a single quarterly VAT return covering all EU countries rather than registering in each one separately. Registration is done through the tax authority of the EU country you choose as your OSS member state.