VAT is collected at every stage, not just at checkout
Value Added Tax is charged at each stage of production and distribution, but businesses reclaim the VAT they paid on their own inputs — so only the final consumer bears the full cost. This is different from US-style sales tax, which is collected once, only at the final retail sale. If you need US sales tax instead, use the Sales Tax Calculator.
Standard, reduced, zero-rated, and exempt
Most countries apply a standard rate to most goods and services, with one or two reduced rates for essentials like food, books, or children's items. Zero-rated goods are taxable at 0% (the seller can still reclaim input VAT); exempt goods fall outside the VAT system entirely (the seller cannot reclaim input VAT). Invoice mode lets you mix all four on one invoice.
Reverse charge and intra-EU supplies
For B2B sales across EU borders, VAT is often not charged by the seller — instead the buyer self-accounts for it under the reverse charge mechanism. Rules vary by country and transaction type, so confirm invoice wording and filing treatment with your tax advisor before relying on this for cross-border invoices.
Why rates change
Governments adjust VAT/GST rates for fiscal policy reasons more often than US states adjust sales tax — several EU countries have changed rates in the past two years. Preset rates here are a starting point; always check the official link shown for your selected country before filing.