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This is the VAT you pay to the UK authorities. However, this does not come out of your pocket. Global-e pays you an additional 20% on the order and Global-e can then claim it back from the authorities. **Example:**An item on your site costs 100 GBP. Global‑e pays you 120 GBP ( 100 GBP + 20% VAT). You pay the authorities 20 GBP. This way you pocket the original price. Result in the Reconciliation report: