VAT can be added to your subtotals by enabling the VAT option under Settings>General Settings. VAT is calculated according to each member states VAT rate. Your users will see it applied at checkout like this:
You as an admin will see the VAT applied on invoices like this:
Now to remit VAT you'll need to export your invoices to CSV and you'll find columns for VAT that you can total up.
Enabling VAT only applies to new users. Existing users will continue to be charged at the agreed upon rate.
At this time, our VAT option applies only to EU countries, as follows:
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom