VAT registered brand - why is my local VAT rate being applied, rather than the VAT rate in the customer’s location?

If you are a VAT registered brand, we deduct an amount equivalent to the VAT that would apply domestically (in the country of your fulfillment location).

This means that irrespective of the locations of your customers, your proceeds from export sales remain constant and in-line with your proceeds from domestic sales. Providing this consistency means that brands know exactly how much they will get from their sales, and limits their exposure to higher VAT rates in foreign markets.