Value Added Tax (VAT) is a tax that is added to almost all goods and services that are bought and sold for use and consumption in the European Union. VAT is calculated based on the country that you live in. For example, if you live in the UK, you will pay 20% VAT. If you live in Germany, your VAT rate will be 19%.
If you are based outside of the European Union, you are not subject to paying VAT.