Consumers purchasing from within the EU must pay VAT on digital goods sold, based on their country of residence. This tax must be applied regardless of where the seller is located.
If you're selling digital goods to customers in the EU, we will automatically include VAT based on your customer's location, deducted it from the balance of the sale, and pay VAT directly for you. Note that your video sale price will not change - VAT is deducted from the sale price that you determined when setting the video price, rather than added in addition at checkout.
To view more in-depth information on VAT, please go here: http://ec.europa.eu/taxation_customs/taxation/vat/traders/vat_community/index_en.htm