VAT is a value-added tax on services, often refered to as Sales Tax.
VAT is required by European law effective July 1, 2003. VAT applies to persons who reside, have a permanent address, or are established in the European Union.
VAT for Sellers Who Reside Outside the European Union (EU)
As a general rule, sellers who reside in a non-EU country, such as Australia or the United States, and who have no permanent address or establishment in the European Union, are not required to pay Value-Added Tax (VAT) in the European Union.
If you are VAT registered and not charging VAT on a sale made to an address outside the EU, BuggyMart strongly advise you to obtain a copy of the original shipping documents to confirm the goods went to the overseas address provided. This should serve as satisfactory evidence if customs and excise question the VAT exempt transaction.