> So you can either stay small and not register for VAT, or get big and have to register for VAT - and charge more to your EU customers - or lower your price. Tough call.

Oh dear, that's not how it works. If you register for VAT because you have to or because you voluntarily do doesn't necessarily change your pricing. In return you can reclaim any VAT that you are charged with when you pay for goods and services. Basically, in the regard of your price calculation, it doesn't matter much if you're VAT registered or not.

Not to mention that private buyers outside the EU will have to pay their locally valid import tax for most goods.

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