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The confusing thing about VAT in Europe is that, normally, you're charged VAT based on where the merchant is located. But for e-books (which are considered computer files rather than "books" for tax purposes - I suppose that's like being considered a "service"), you pay VAT based on where the customer resides. In the case of services, you are supposed to pay VAT based on where the services were performed, so I guess the analogy is logical.
What has been annoying is seeing all the fuss Amazon has been putting up back in the US about refusing to charge the appropriate sales tax (i.e. by customer residence) when they seem to have a very effective and efficient system in place for charging the correct VAT to those of us buying e-books from abroad. And apparently Kobo has something similar since they sell to a wide range of countries around the world.
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