# EU VAT Calculator MCP > EU VAT Calculator manages European Union Value Added Tax (VAT) complexity across 27 member states. Use this MCP to calculate taxes for cross-border B2C sales, determine correct tax rates based on product categories, and verify compliance rules like OSS or Reverse Charge. It provides the exact tax amount and total invoice value needed for reliable EU e-commerce billing. ## Overview - **Category:** finance - **Price:** Free - **Tags:** vat, eu, tax, compliance, accounting, europe ## Description Handling VAT across Europe is a regulatory headache. This MCP solves that by giving you precise tools to manage every type of European Union sales tax. Instead of guessing which rate applies, your agent can immediately look up the correct percentage based on where your product ships and what kind of goods it are—whether standard, reduced, or essential. It handles all three major types of cross-border transactions: domestic sales, B2C consumer shipments (OSS), and B2B reverse charge scenarios. You feed it the details—the countries, the net amount, the buyer type—and it calculates the exact tax owed and the final invoice total. Developers building e-commerce platforms or accounting software use this MCP to ensure their billing is legally sound everywhere in the EU. It's one of Vinkius' core finance tools, meaning you can connect your AI client once and get access to reliable European compliance data for all your projects. ## Tools ### check_vat_compliance Identifies the specific VAT rule that governs a transaction, confirming compliance status for EU sales. ### lookup_vat_rate Retrieves the applicable tax rate by specifying an EU country and whether the product is standard, reduced, or essential goods. ### compute_transaction_tax Calculates both the VAT amount and the total final price for any given transaction scenario. ## Prompt Examples **Prompt:** ``` What is the VAT rate for food in France? ``` **Response:** ``` The applicable VAT rate for 'Reduced Goods' in France (FR) is 5.5%. ``` **Prompt:** ``` Calculate the total for a €100 sale from Italy to Spain for a consumer. ``` **Response:** ``` For a B2C transaction from IT to ES with a net amount of €100.00, the applied rate is 21%. The tax amount is €21.00, making the total amount €121.00 under the OSS rule. ``` **Prompt:** ``` Is a B2B sale from Germany to Ireland subject to reverse charge? ``` **Response:** ``` Yes, the transaction follows the 'Reverse Charge' rule because it is a cross-border B2B sale. ``` ## Capabilities ### Determine VAT rules Checks a transaction to confirm which specific VAT rule applies (like 'Domestic VAT' or 'Reverse Charge'). ### Find tax rates by product Looks up the exact VAT percentage for any country and specifies if the goods are standard, reduced, or essential. ### Calculate final taxes Computes both the specific VAT amount and the total invoice value for a given transaction across EU borders. ## Use Cases ### Launching a new product line in France A company needs to know the tax rate for its specialized medical equipment in France. Instead of calling an agent and waiting hours, they ask their agent using `lookup_vat_rate` and get the specific percentage immediately. ### Processing a cross-border sale from Italy A seller completes a €500 B2C order going from Italy to Germany. They use the MCP's calculation features to generate an invoice that correctly applies the OSS rules, showing the precise tax and total amount. ### Verifying a corporate purchase An accountant receives invoices for B2B purchases between two EU countries. They use `check_vat_compliance` to confirm if the transaction correctly utilized the 'Reverse Charge' rule before submitting it for audit. ### Updating a payment gateway A developer needs to update their platform to handle variable tax rates. Instead of building complex, country-specific logic, they call `compute_transaction_tax` and pass the variables to get accurate totals every time. ## Benefits - Eliminate tax guesswork. Instead of manually checking rate tables, the `lookup_vat_rate` tool finds the exact percentage based on country and product type (Standard, Reduced, or Essential). - Handle complex billing automatically. The `compute_transaction_tax` tool calculates the final total and VAT amount for cross-border sales, whether B2C or B2B. - Know your compliance status instantly. Use `check_vat_compliance` to confirm if a transaction follows the required regulatory path (e.g., OSS, Reverse Charge). - Stop dealing with country variations. This MCP centralizes European tax logic, letting you manage 27 member states from one place. - Speed up development cycles. Developers build payment systems knowing they have accurate, reliable EU financial data at their fingertips. ## How It Works The bottom line is that you get instant, accurate compliance numbers without having to manually cross-reference EU tax codes. 1. You provide the necessary details: the countries involved, the goods' net value, and the type of sale (e.g., B2C or B2B). 2. The MCP runs these inputs through its regulatory logic to calculate the applicable tax rule. 3. Your agent returns a clear breakdown, giving you the correct VAT percentage, the specific tax amount, and the final total invoice value. ## Frequently Asked Questions **Can the EU VAT Calculator handle B2C sales for consumers?** Yes. The MCP manages complex B2C cross-border (OSS) scenarios, calculating the correct tax amount and total invoice value when a consumer buys goods from one member state to another. **How do I check if a transaction needs 'Reverse Charge'?** You use `check_vat_compliance` to verify if a B2B sale is subject to the Reverse Charge rule. This tool tells you immediately whether that complex tax mechanism applies. **Does lookup_vat_rate only find general VAT rates?** No, `lookup_vat_rate` distinguishes between Standard Goods, Reduced Goods, and Essential Goods, providing three distinct rate options for accurate pricing. **Is this MCP useful for non-EU sales?** This MCP is specialized entirely for the 27 member states of the European Union. For transactions outside the EU bloc, you will need a different tax tool.