VAT stands for Value-Added-Tax. It's placed on each stage of the supply chain (eg. production, sale) for goods and services. VAT also applies to all orders that are shipped to customers. However, you can claim back your VAT payments as it is an expense that is covered by the end user. For that, you need to register for a VAT number in your country. Please discuss this with your accountant or seek legal advice, as every region in Europe is different.
Note VAT is only applied in Europe. If you are selling goods to other regions VAT will not apply, however, normally there is import or duty taxes.