I must admit, I'm a little confused with this one.

You say that you are an EU citizen, yet the country is incorrect.

So firstly, what exactly do you mean by that?

Do you mean that you are living in the EU, or the UK?

If you are in the UK, are you a naturalised citizen?  
Are you using a private account?

If you are located outside the UK, then ebay will be adding VAT to your sales, as they are jointly liable for it.

But if you are not an actual UK citizen, then you should be registered for VAT already and claiming it back.
So effectively, you need to reduce your prices to account for the VAT portion of it.
You would then be able to also claim the VAT on your purchases.

I'd suggest that you have a read of this:

https://www.gov.uk/hmrc-internal-manuals/vat-registration-manual/vatreg37150