VAT collected through PayPal is reported on 1099

My small business makes money from an online store that sells to people located in the European Union. The site automatically calculates VAT tax and adds it to the price of any item I sell. I get paid directly through PayPal from each customer and then once a quarter I send the VAT I collected back to the online retailer.

I understand that VAT is not income, but when it goes through PayPal it is included on their 1099. What is the correct way to deduct this amount?

For TurboTax 2022 I entered it as an expense under "Taxes & Licenses" category. Is this the correct location to report this tax?