To avoid losing money due to higher tax rates in certain countries, sellers are encouraged to base their pricing on the highest applicable tax rate across the regions they serve. For example, if you might sell to Hungary (27% VAT) and also to Luxembourg (17% VAT), basing your pricing on the 27% rate ensures your margins remain intact.
The platform handles the regional tax adjustment for each customer, but your base price should anticipate the most taxing scenario.
