VAT paid on goods exported to the EU

We are a small business about to start sending our products to a customer in Portugal. My understanding is that we will have to pay VAT on the value of the goods in Portugal when they enter the country. Are we able to claim this VAT back somehow or do we just have to allow for this cost?

Hi timh83,
If you export goods to the EU then they would likely be subject to import VAT in the member stste.
If you are the importer of the goods in to the EU then you will be responsible for paying the VAT there.
However if your customer is the importer of the goods then they would be responsible for paying the import VAT.
If the goods you ecport are below a value of £135 then please see the guidance below:
EU VAT e-commerce package
Thank you. 

timh8 You cannot reclaim Portugal VAT on the UK VAT return, you would need a VAT registration in Portugal for that. Discuss "Incoterms" with your customer and freight agent. If you are shipping DDP (Delivered Duty Paid) then you will pay the import duty/import VAT when goods enter Portugal, so this will eat into your margin/may need to adjust your price to customer. If you ship DAP (Delivered At Place) then your customer is the one who pays the import duty/VAT and assuming your customer is VAT registered in Portugal, the customer may be able to reclaim the Portugal Import VAT on their Portugal VAT return (you don't state if your customer is a consumer or another business).