Work out gst on reverse charge instantly with clear inputs, formula shown and shareable results.
Under reverse charge the recipient rather than the supplier pays the tax, depositing it in cash and then claiming credit if the input is eligible. Where credit is available the net cost is unchanged, but the cash must still be funded.
Reverse charge
Tax = value × rate, deposited in cash; net cost = value + tax - eligible credit
Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
It secures collection where suppliers are unregistered, overseas or hard to police.
No. Reverse charge tax must be paid in cash; credit can only be used afterwards against other liabilities.