I set my e-book at £1.99 and I see on Amazon (.co.uk) it's going for £1.59 – and that includes VAT.Am I missing something or is that a bit odd?
Perfectly normal. Amazon will often discount your books to try to improve sales. They have some sort of magic algorithm that works it out. However, whatever price they sell it at, you will receive the same revenue, so it's nothing to worry about.