The exact same issue arises in enterprise software sales, the customer is subject to many of the same issues of value perception and price justification as a re

The exact same issue arises in enterprise software sales, the customer is subject to many of the same issues of value perception and price justification as a regular consumer, and the demand curve exists as you would expect for any product. Sometimes it's easier because it's convention to quote the price without VAT, but many companies will structure budgets for departments that are not VAT-aware, so if I'm selling to Bill in operations, the total spend including VAT is taken out of his operations budget for the year (this makes some sense because the client doesn't always know whether they will be VAT neutral or not, and tracking the allocations by department is not something anyone I've met does. In the vast majority of cases, an enterprise software company will collect far more VAT than it pays out, so it's not zero sum.