I also have serious concerns with allowing customers to self-declare their eligibility for zero-rating the VAT as it is so easy to find a suitable valid VAT number to input, so think I will go with Martins idea of applying it manually requesting customers contact us directly by email or phone to confirm eligibility.
I don't think it will be a major issue for us as most of our products are unlikely to be classed as an allowable business expense for many customers other than other golf shops and retailers, most of whom contact us in advance to enquire about trade/bulk pricing in any case.
You are not obliged, as far as I can find, to do the reciprocal arrangement. You can charge the VAT and they can claim it back on their VAT return, the same as we do in the UK
1.
If you are registered for VAT in the UK and receive goods from other countries in the EU, technically known as acquisitions rather than imports, you will normally pay VAT at the time the goods come into the UK. The rate of VAT payable is the same rate that you would have paid had the goods been supplied to you by a UK supplier. This VAT is known as acquisition tax and you can normally reclaim this VAT, if the acquisitions relate to VAT taxable supplies that you make.
You cannot reclaim VAT on items that you have bought from suppliers in other European Union (EU) states. You may be able to claim the VAT back from the relevant VAT body in those states.
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