I happen to be a lawyer and I would say you would probably want to consult an accountant on this as well. I'm also presuming this is a B2C situation.
My two cents is that you are the one paying VAT to whichever government your business is obliged to pay VAT to. Even if you calculate your prices without VAT you will still need to 20% owed according to your example.
So if you only add a surplus of 5% for VAT the extra 15% would come out of your product price.
I would choose a payment processor that applies the right kind of VAT according to where your buyers are located and have that data directly fed to my accountant. Then you can be sure your are not loosing money to taxes and that your are following the law to the best of your abilities.
My two cents is that you are the one paying VAT to whichever government your business is obliged to pay VAT to. Even if you calculate your prices without VAT you will still need to 20% owed according to your example.
So if you only add a surplus of 5% for VAT the extra 15% would come out of your product price.
I would choose a payment processor that applies the right kind of VAT according to where your buyers are located and have that data directly fed to my accountant. Then you can be sure your are not loosing money to taxes and that your are following the law to the best of your abilities.