When a company is VAT-registered in an EU member state, it can purchase goods or services from another EU country without being charged the seller’s VAT.
This is known as an intra-Community supply.
In such cases, the buyer does not pay VAT to the supplier but must apply the reverse charge mechanism in their own country.
This means the company declares both:
VAT due, and
VAT deductible
These amounts usually offset each other in the VAT return, meaning no additional VAT cost for the business.