What's up with VAT?

[LookLookPrettyPaper]

I asked this question in a different team too but I think this team is a little more active...
So Esty has started charging buyers VAT on digital items. Ok, cool.
I'm really no tax fundi. I get most of the basics, the things I need to know for me and my shop - in my home country that is...
But in South Africa, we pay pretty high VAT in general - and thats about 14%. When VAT on digital items was implemented here on etsy, the first item I sold after that was a $5 item and my customer was charged $1 VAT! That seems awfully high.... No?
The same happened for the next item. But for the two $5 Items after that, each buyer was charged $0.00!! Why? How is that fair to my customers who did have to pay VAT??
Am I being blonde here or does that seem a little off...? Is it beacuse they are in different countries? Different laws?
I am totally fine with the idea that my buyers get charged VAT if its small % of the cost of the item/s but charging 20% seems too high and I worry that it may hurt my shop in the long run...
Could anyone shed some light on this for me?

[Former_Member]

I'm assuming different country, different VAT amounts. Or the second buyer doesn't have VAT?

[LookLookPrettyPaper]

Yes, I was being blonde - the VAT is only for customers in Europe. But I still think that $1 VAT for a $5 item is rather a lot! Anyone have any insight?

[Former_Member]

But etsy doesn't set the VAT, these are determined by their respective countries. Etsy is only helping us comply with the law by collecting VAT on our behalf.

If you have a complaint about the VAT, I would take it up with those specific countries.

[TinyLuck]

VAT in Europe ranges from 17 to 27 percent. This link gives you an overview of all the coutries and their VAT rates:

http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_...