Company "A" is a EU company which getting services from a company outside EU.
Company "A" exempt from VAT meaning, it dosen't "charge" VAT on income and can't claim refunds for expenses.
In accordance with many sites i read it saying that:
"If you receive services for business purposes from a supplier based outside the EU, you should usually pay VAT at the applicable rate in your country, as if you had supplied the service yourself (using the reverse charge procedure). You can usually deduct this amount later on when you make your VAT declaration."
In our example above Company A can't claim refunds for expenses, so it means that the Company should pay VAT and that's it?
I understand that EU wants to encourage deals within the EU but in our universal world cross border transaction are normative.
Is there any solution for that? or a way to decrease VAT exposure?