European VAT Exemption

European VAT Exemption – HCL Fasteners EU

European VAT Exemption

Information for EU Business Customers

Intra-Community Supply of Goods — Article 138, VAT Directive 2006/112/EC

The VAT Reverse Charge Mechanism (B2B)

As an EU-based supplier, we offer VAT exemption for qualifying Business-to-Business (B2B) transactions with customers established and VAT-registered in an EU Member State different from our own. This exemption is applied through the VAT Reverse Charge Mechanism — a mandatory system under EU VAT law.

How the Reverse Charge Works

Seller — Us

We do not charge VAT on the invoice. A 0% VAT rate is applied.

Buyer — Your Business

Your business is legally responsible for declaring and paying VAT in your own Member State — typically deductible in the same return, making the transaction tax-neutral.

Requirements for VAT Exemption

  • 1. VAT-Registered StatusYour company must hold a valid VAT Identification Number issued by an EU Member State other than our Member State of dispatch.
  • 2. Valid VIES IDYour VAT ID must be successfully validated against the official VIES database at the time of checkout.
  • 3. Intra-Community SupplyThe goods must be physically shipped from our EU Member State to a different EU Member State where your business is established.

Step-by-Step Guide

1
Enter Your VAT Number at Checkout

During checkout, look for the VAT number field in the Additional tax details section beneath your shipping address. Enter your full VAT Identification Number including the two-letter country code prefix — for example DE123456789, FR02838614014, or CZ27365575.

2
Automatic VIES Validation

Once entered, your VAT number is validated in real-time against the official VIES database. If the VIES service is temporarily unavailable, validation may not complete immediately — please contact us directly in that case.

3
Review Your Order Total

If your VAT ID is valid and all conditions for the Reverse Charge are met, VAT will be automatically removed. Your order total will display a 0% VAT rate before you confirm payment.

4
Receive Your Compliant Invoice

Upon order completion, a legally compliant VAT invoice is automatically generated and sent to you. It will clearly state the zero-rated VAT status, your VAT ID, our VAT ID, and the required text: "Reverse Charge Mechanism: Recipient liable for VAT."

Note: If validation fails, we are legally obliged to charge our local VAT rate. Please ensure your VAT ID is correctly registered on the VIES database before contacting our support team.

Customer Responsibility & Compliance

  • Mandatory: It is your legal responsibility to ensure the VAT ID provided is valid, accurate, and belongs to the purchasing entity.
  • Local Declaration: Your business is responsible for correctly reporting the acquisition of goods in your local VAT return under the Reverse Charge rules.
  • Audit Trail: We maintain a clear record of VIES validation at the time of purchase, which is essential for our compliance records.

We recommend consulting with a local tax professional or accountant to ensure your business fully complies with the VAT laws in your country.