VAT is the tax that is added onto a purchase for EU customers.
Here is a break down of who is charged VAT and the tax percentage:
- UK customers WITHOUT VAT number: Pay 20% UK rate of VAT
- UK Customer WITH VAT number: Also pay 20% of VAT (and must reclaim through their VAT return as normal)
- EU customers WITHOUT VAT number: Pay VAT at their LOCAL rate (as per the table HERE) i.e. it changes on a country by country basis. Prior to Jan 1st 2015 EU customers were charged VAT at the UK rate.
- EU customers WITH VAT number: As long as their number is valid, they DO NOT have to pay any VAT, as before.
- Outside the EU: No VAT is charged.