Hello there! We're a online trader and we currently collect and pay VAT using the flat rate scheme. We trade almost exclusively to consumers online, and we've had an EU customer check out and contact us for a VAT refund as we state VAT is included in our pricing, as required. The issue is that we essentially lose out in a big way, because the products he has purchased we were not able to reclaim VAT on in the first place, due to the way FRS works. So we're essentially providing a discount if we do this, and losing out. My question is: do we actually have to do this? Do we have a choice? I've had this question once before for a small order and I gently communicated the FRS to the customer in Spain and she understood and didn't have any problem with our stance, however this is a much larger purchase.