VAT for goods / Services purchased for a UK entity from an EU provider

If a UK entity purchases goods or services (for example, IT services) from a German entity and they have 19% VAT on their invoice, how is this processed? Does the UK entity pay the 19% and absorb the cost? The UK entity is the end point and not reselling any goods or services on.

Generally, the place of supply of B2B services is that reverse charge applies, so the German supplier should not be charging you German VAT at 19%, this is assuming the services you are buying are general rule services. For example, land related services such as surveying land in Germany would still be charged with German VAT, as would certain telecom services (use and enjoyment). Link to HMRC Notice : https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a You cannot reclaim foreign VAT on a UK VAT return, you can only reclaim UK charged VAT, so this 19% is a cost you just have to absorb or the better approach is to go back to the supplier, point out to them that you are a business with a UK VAT registration and that their supply/invoice to you likely falls under reverse charge and hopefully they will re-issue their invoice but without the 19% VAT. The supplier must be satisfied that you are "in business", so if you are a sole trader "Sarah Bellerby" and you order services from Germany using your own name, they may see you as a person buying personally rather than as a business buying for the business. whereas if you were a company "Sarah Bellerby Ltd" then it is obvious you are a business. I note you state you are an entity, but you may have ordered goods in your own name by accident, for example, if you have a LinkedIn or Spotify account, chances are this will be in your own name, even if you use both only for business purposes, it is rare for people to sign up to LinkedIn as a business or have a corporate Spotify account.

Hi Sarah,
Regarding services this should fall under the B2B general rule and VAT would not be charged and the customer would account for the VAT under the reverse charge please see link here section 5 Place of supply of services (VAT Notice 741A).
Thank you.