Question:
I’m placing an order with a wholesaler in the Czech Republic, and they are charging me VAT. They mentioned that customs fees are included in the delivery fee (which they haven’t charged me separately), but they are still applying VAT to my order.
As a UK-based seller, I have to pay VAT in the UK, not in the EU.
Where is delivery address ? Are you VAT reigster in Uk ? Are you VAT register in Cz ? Do you have EORI number ? What’s trading terms?
If you’re exporting from CZ you pay 0% VAT at point of purchase.
As a UK-based business purchasing from an EU wholesaler, you typically shouldn’t be charged VAT if you provide a valid UK VAT number, as the transaction should be treated as a zero-rated export under the reverse charge mechanism. You should request that they remove the VAT and issue a VAT-exempt invoice, clarifying that you will handle VAT upon import into the UK. If they refuse, they may not be set up for international B2B transactions, in which case you might need to reclaim the VAT through the EU refund scheme, though this can be a lengthy process.
Yes, I have an EORI number, and I order from a company that is not VAT-registered. Also, the delivery address is in the UK.