VAT question for my fellow Europeans

If you guys do e-commerce in your own country, how does VAT affect your business? Do you just always assume you will lose 20% (roughly) of the revenue to VAT and increase the price of your products or is there any other way of doing things? I know you can charge VAT on top of your product price, but a higher price will always lead to less conversions…

I built a store that had 20% profit margins, which would be amazing anywhere in the world, but because I live in Europe, does that mean that I would only be breaking even? That seems extremely unfair… (I don’t have to pay VAT because this is my first year in business, but if it wasn’t then I guess I would have simply lost money? On something the same guy in America would have made good money?)

That also limits a lot what I could sell, it would always have to be something with extremely good margins…

Am I thinking wrong or is ecom in Europe just that hard?

submitted by /u/anon_mike
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