As to the price of a Kindle, I am sure you will find yourself paying Germany or Austria or Luxembourg their VAT depending where you buy it.
The prices of Kindle content seem to be just the base plus Luxembourg (where Amazon SARL is based) VAT, 15% at least for items available worldwide.
Thus for Lois Bujold's The Spirit Ring (recommended) 6.47 Eur (5.61 GBP from Amazon.co.uk) inc tax and $7.99 in the US so $9.19 with tax.
In Germany in Feb it was $11.49, $7.99 + $2.00 plus 15% tax. I expect other EU and non-EU buyers will still have the $2 surcharge.
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