We haven't sorted out the VAT situation yet, we've not launched the payment process & that's one of the things on my list to sort out before we do!

Thanks for the recurly link, we're using Spreedly but I don't think they handle that yet so will probably have to sort that ourselves by having VAT and non-VAT plans & set the customer up with the right one.

I've seen some places just absorbing the difference to keep it simpler, so that's an option too.