Our company is based in United Kingdom and sells subscription based security software. We do not physically ship product, the end user(always a company not an individual) is required to download from our UK based website. We do not charge VAT to European Nations. When dealing with our Spainish Distributor, they withhold 10% for IVA but as we do not charge any tax, we cannot recover this cost in the UK. Does anyone now if this deduction is right in these circumstances.