Summary:
Yes, when you set your price on your app submission (under the “Availability & Pricing” tab), the list price is inclusive of VAT. Therefore, when you enter your app’s price, you should not add extra to cover VAT. For Example: Assuming a 15% VAT, if you would like your customers to pay 2.99 EUR for your app, you should simply enter in 2.99 EUR for the price of your app, not 3.44 EUR (list price + 15%).
Note: These taxes are deducted from the list price when calculating Royalties.