mabrookes: I don't know if it will be the same here, but on indiegala the only thing they use to check if you should pay tax is your IP so using a proxy will avoid any tax charges.
I am interested to know if they are VAT registered in all the different countries, and if not where the VAT it going. Also how they are calculating VAT when it does actually change in some countries, and how they distribute it to diffrerent countries depending on who bought it.
That would certainly be interesting to know. I know that a company in Germany only has to deduct VAT if they're earning over €17,500, but I think that limit is much higher for countries situated abroad - around €100,000 if memory serves.
I've just been charged 21% VAT, which is wrong for Germany, unless Blink is based in an EU country with a 21% VAT rate (Belgium, Czech Rep., Italy, Spain). However, this is on the assumption that Blink Entertainment is American, and I might be wrong.
Edit: ToS says Netherlands, which does indeed have a 21% VAT rate, so it's right.