Even though Etsy informed us a while ago that they were going to deal with the European VAT issue, it was still unclear how: I didn't get any communications from Etsy to let me know if the VAT was going to be added to the price of items sold at the checkout or deducted from the total price and then paid by Etsy to the corresponding European tax organisations.
Luckily I was in contact with a designer who sells crochet patterns on Etsy and she told me Etsy takes the VAT share (as well as its own commission) out of the price that the designers list at.
I then decided to update the price of all my knitting patterns: you may find these are a teeny bit higher than the Ravelry price, but that's to account for my listing costs and commission of sales on Etsy (there are none on Ravelry, as long as you stay under a certain amount - which doesn't apply to my very small volume of sales).
The moral of this story is, if you wish to purchase any of my knitting patterns, it's cheaper to do so through my Ravelry store;-)
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