VAT is physically paid by businesses in EU. At the end of the day it's a tax on final business to customer transaction (like sale tax). It's levied on a transac

VAT is physically paid by businesses in EU. At the end of the day it's a tax on final business to customer transaction (like sale tax). It's levied on a transaction. Saying one party pays it but the other doesn't is meaningless. It's added to the transaction and then collected by the business and transferred to government.