VAT is the international term for ‘Value added Tax’. In the Netherlands it is called 'Belasting Toegevoegde Waarde' (BTW). A general, broadly based consumption tax calculated over (almost) every purchase and is being included to the purchase price by the shop.
The percentages of VAT can be different compared to other countries. In Holland the rate for most luxury goods is 21%. Each traveler who purchases goods meant for personal use, to take with her/him to their non-EU residing country, is eligible to claim a VAT refund after the goods have been validated for export.