We deal with few EU based Online Suppliers/Retailers (France & Denmark) and they are both VAT registered in their own country.
They have been supplying good to us- (UK VAT registered company) through their website as they are only storing their goods in their respective countries and Not in the U.K
Since Brexit, we now have the dilemma about re-claiming the Input VAT as they are not U.K VAT registered and also are not willing to Zero rate their sales Invoices.
Their explanation so far is that they are predominantly B2C business and not a B2B model and therefore they claim that they are under no obligation to zero rate their Invoice and are continuing to charge VAT based on their country VAT% rate.
So, before we make the decision to stop purchasing from those suppliers, may I ask if they are in fact correct in their Tax Obligations ?
Also, is there a way for us to reclaim the Input VAT on all those purchases past 1st January 2021 until now using EU 13th Directive or any other way?
I would really appreciate your response.