There are 5 types of VAT Settings that you can select in EU marketplaces.

1. Not Applicable: VAT=0%

2. Not Registered

▸Formula:

FBA: (Amazon Referral Fee+Closing Fee+FBA Fulfillment Fees) X Not Registered %
FBM: (Amazon Referral Fee + Closing Fee) X Not Registered %

3. Flat Rate

▸Formula: Price X Flat Rate%

4. Standard Rate

Standard VAT rate varies in different countries. (UK: 20% / DE: 19% / FR: 20% / IT: 22% / ES: 21%)

▸Formula:
FBA: [Price-(Product Cost+Additional Cost)] * Standard Rate% / (1+Standard Rate%)
FBM: [Price-(Product Cost+Additional Cost+FBM Shipping Cost)] * Standard Rate% / (1+ Standard Rate%)

• VAT On Sale (Output VAT)
• VAT On Cost (Input VAT)

5. Reduced Rate

Reduced Rate varies in different countries.

▸Formula:
FBA: [Price-(Product Cost+Additional Cost)] * Reduced Rate% / (1+Reduced Rate%)
FBM: [Price-(Product Cost+Additional Cost+FBM Shipping Cost)] * Reduced Rate% / (1+Reduced Rate%)

• VAT On Sale (Output VAT)
• VAT On Cost (Input VAT)