VAT stands for Value Added Tax and is a tax Europe places on items in each stage of the supply chain for goods and services consumers purchase. It’s similar in some ways to sales tax in the USA.
The VAT will automatically be added to the buyer’s cart at a fixed rate of 21%. The USA sales tax will be removed on these orders and replaced with the VAT.
Many of our competitors charge sellers a portion of the VAT, however, we pass it to the buyer which saves sellers this cost. That means fulfillment costs are lower for sellers with EU orders produced and shipped in the EU.