[lukeredpath]

One workaround is to change your business model and accept donations instead. That obviously won't work for everyone, obviously.

This works because tips and gratuities are not considered taxable consideration for VAT purposes and therefore outside the scope of VAT. It has to be a genuine tip though - i.e. voluntary, no minimum or recommended amount and not a condition of purchase.

There is a platform out there that lets you sell things under this model but I can't remember it's name.