Uk Vat When Publishing With Amazon Kindle/ebooks – How Does It Work?

I have been considering publishing with Amazon for a while now but am extremely cautious as to how it works…
I have had a read through some of the information in the website on how to publish with them but am still unsure how the payment aspect works. So I would be immensely glad for anyone who knows how it works, or better yet, someone who has had experience publishing in the UK.
How does the VAT work?
How does amazon make profit? Do you pay them or do they take percentage of your downloaded purchases?
Thanks 🙂

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