EU/UK Tax Tools
VAT Margin & Reverse Charge Calculator (UK & EU)
Quickly calculate VAT on margin scheme items or reverse charge supplies under EU/UK regulations.
VAT Calculator
Calculate VAT under margin scheme or reverse charge rules
Enter your values and click calculate to see results
What Is the VAT Margin Scheme?
The margin scheme allows businesses dealing in second-hand goods, antiques, or artwork to pay VAT only on their profit margin, not the full sale value.
🧮 Reverse Charge Explained
Under the reverse charge mechanism, the buyer records both the output and input VAT, meaning the supplier doesn't charge VAT. Common for B2B or cross-border services.
💡 Examples
Margin Scheme Example
You buy a used car for £8,000 and sell it for £10,000.
VAT = (£10,000 – £8,000) × (20 / 120) = £333.33
Reverse Charge Example
UK business buys a €1,000 B2B service from an EU supplier.
Reverse charge VAT = €1,000 × 20% = €200
Net VAT impact = €0 (if fully recoverable)
⚙️ Why It's Important
VAT Compliance
Ensures VAT compliance for special cases
Time Savings
Saves time for accountants & sellers
Avoid Overpayment
Helps avoid overpaying VAT on profit margins
EU/UK Trust
Increases trust for EU/UK users