For EU merchants selling to customers outside of the EU, the local VAT can be deducted, however, we recommend to use this extra margin for subsidizing shipping prices, as we find that customers are very sensitive to shipping rates. Not deducting the amount equal to local VAT from product prices is essentially the same as deducting the VAT and adding a 20% coefficient. The product price will remain the same as for your local customers, but converted to the customers’ currency. This is our default setting for EU merchants and is part of the margins we offer in the initial marketing proposition for your customers.

However, if you prefer to reduce the prices for specific countries this can be done very easily using our country coefficient settings.