Calculate VAT liability, reverse charge obligations, OSS thresholds, and digital services tax for any EU country. Built for founders selling into Europe.
Once you exceed €10,000 in cross-border B2C sales within the EU, you must charge VAT at the buyer's country rate (not yours). Register for OSS (One Stop Shop) to file one return for all EU countries.
| Country | Standard VAT | Digital services | OSS eligible |
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The European Union's Value Added Tax (VAT) system is one of the most complex tax regimes for cross-border sellers. Since the 2019/2021 VAT package reform, any business selling digital services to EU consumers — regardless of where the business is located — must charge VAT at the customer's local rate. This means a US-based SaaS company selling to a customer in Germany must charge 19% German VAT, not US tax. The rules apply to B2C transactions; B2B cross-border services within the EU use the reverse charge mechanism, where the buyer self-assesses VAT. Understanding these rules is critical: failing to charge the correct VAT rate can result in back-taxes, penalties, and the loss of customer trust. This calculator helps you determine the correct VAT rate, whether reverse charge applies, and if you've exceeded the OSS threshold for your transaction.
The One-Stop Shop (OSS) is an EU scheme that simplifies VAT reporting for cross-border sales. Instead of registering for VAT in each of the 27 member states, you register for OSS in your home country and file a single quarterly return covering all EU sales. There are two variants: domestic OSS (for intra-EU supplies where you'd normally charge your own rate) and cross-border OSS (for sales to consumers in other member states). Non-EU businesses use the Mini-OSS variant, which covers cross-border digital services to the entire EU. The key threshold is 10,000 EUR in annual cross-border B2C revenue — below this, you can continue charging your home country's rate. Above it, you must register for OSS and charge the customer's local rate. Quarterly returns are due by the 19th day of the second month following each quarter (e.g., Q1 return due March 19).
In B2B cross-border transactions within the EU, the reverse charge mechanism shifts the VAT obligation from the seller to the buyer. The seller issues an invoice at 0% VAT, quoting both their own VAT ID and the buyer's VAT ID. The buyer then self-assesses VAT at their local rate and reports it on their VAT return. This avoids the need for the seller to register for VAT in the buyer's country. Both parties must have valid VAT IDs — if the buyer cannot provide one, reverse charge does not apply and the seller must charge VAT. For non-EU sellers providing services to EU businesses, reverse charge also applies: the EU buyer self-assesses, and the non-EU seller invoices at 0%. Always validate the buyer's VAT ID through the VIES system before applying reverse charge.
A Berlin-based SaaS company (VAT-registered in Germany, 19% standard rate) sells a €2,000 annual subscription to a private consultant in France. This is a B2C digital service transaction. The German seller has €45,000 in cross-border EU sales this year, well above the €10,000 OSS threshold. Result: the seller must charge French VAT at 20% = €400 VAT. The invoice shows €2,000 net + €400 VAT = €2,400 gross. The €400 is reported on the seller's quarterly OSS return under France. If the French customer were a business with a valid French VAT ID, reverse charge would apply instead: the invoice would show €2,000 at 0% VAT, and the French business would self-assess the 20% on their own return.
If you're selling B2C digital services and exceed €10,000 in cross-border sales, you charge the customer's local VAT rate (e.g., 19% for Germany, 20% for France, 21% for Netherlands). Below €10,000, you can charge your home country's rate. For B2B transactions within the EU, reverse charge applies — you invoice at 0% and the buyer self-assesses.
No — the OSS scheme lets you register in a single member state and report all cross-border digital services through one quarterly return. Non-EU businesses use the Mini-OSS variant. This is significantly simpler than registering separately in each country where you have customers.
Failure to charge and remit the correct VAT can result in back-tax demands, penalties (typically 10-30% of the unpaid tax), and interest charges. In severe cases, tax authorities can pursue legal action. It's always better to over-estimate VAT than under-estimate. Consider using a tax professional or automated VAT compliance tools like Avalara or TaxJar.
Reverse charge for physical goods only applies above the intra-EU distance selling threshold (typically €35,000 per year per country). Below this, you charge VAT at your home country's rate. Above it, you charge the destination country's rate. This is separate from the €10,000 OSS threshold for digital services.
This calculator covers EU VAT rules. Switzerland has its own VAT system (8.1% standard rate as of 2024), and the UK post-Brexit has separate rules (20% standard rate). Both have their own thresholds for non-resident registration. For Swiss or UK-specific VAT advice, consult a local tax professional.