Reverse VAT means undoing the arithmetic
On this site, Reverse VAT describes extracting the net value from a VAT-inclusive price. For example, £120 including 20% becomes £100 net and £20 tax. It is a calculator operation and does not change who must account for VAT.
Reverse charge is a tax treatment
A reverse charge can require the customer to account for VAT instead of the supplier charging it in the ordinary way. Domestic construction reverse charge rules depend on conditions including the nature of the supply and the parties. A normal price calculator cannot determine whether those conditions apply.
Review the transaction before calculating
Check the contract, the actual services, registration information and relevant customer status. Save the evidence supporting the treatment. Do not use Remove VAT as a shortcut for converting an ordinary invoice into a reverse-charge invoice.
Use the right next step
If you simply need the net price from a normal VAT-inclusive receipt, use Reverse VAT. If a supplier mentions reverse charge, check the appropriate HMRC guidance and your accounting software workflow. Overseas and domestic reverse-charge cases need their own analysis.
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Official sources
Sources checked: 2026-09-26. Check the official guidance for later changes.
Educational information and estimates. These tools do not submit VAT returns or determine the treatment of a specific transaction.