How it works
Output VAT = taxable base × domestic rate. Recoverable input VAT = output VAT × eligible recovery fraction; net cost is their difference.
Input definitions
- Taxable reverse-charge base in local currency
- Enter the value in the labeled unit.
- Confirmed domestic VAT rate (%)
- Enter the value in the labeled unit.
- Eligible input tax recovery (%)
- Enter the value in the labeled unit.
A worked example
- Taxable reverse-charge base in local currency
- 1000
- Confirmed domestic VAT rate (%)
- 20
- Eligible input tax recovery (%)
- 100
Assumptions & limits
Sources checked 18 October 2026. User-confirmed reverse-charge transaction and domestic rate. Does not determine place of supply, registration, exemption, VAT number validity or return box mappings.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-18. Content checked against the stated method and examples. Our verification approach.
Common questions
Does a zero balance mean the transaction is outside VAT?
No. A fully recoverable reverse charge can produce equal output and input entries. Eligibility and reporting obligations must still be established.
How does EU reverse-charge VAT accounting scenario work?
Output VAT = taxable base × domestic rate. Recoverable input VAT = output VAT × eligible recovery fraction; net cost is their difference.
What should I check before using EU reverse-charge VAT accounting scenario?
Sources checked 18 October 2026. User-confirmed reverse-charge transaction and domestic rate. Does not determine place of supply, registration, exemption, VAT number validity or return box mappings.