You can disable automatic collection, but keep address collection enabled from the "Payout mode" account settings page. Please keep in mind this applies to only sellers using direct payments. For our payouts system, itch.io is the merchant of record, and is responsible for VAT.
You can then apply an inclusive VAT rate per transaction based on the origin of the buyer. (itch.io defaults to an exclusive VAT right now, but it's confusing to many buyers and probably something we're going to change this year)
Thanks