> VAT is paid by the consumer, not the business This doesn't matter. It's like saying "the employee doesn't pay employee tax; the business does". The cost is

> VAT is paid by the consumer, not the business This doesn't matter. It's like saying "the employee doesn't pay employee tax; the business does". The cost is still there for the business, who could otherwise be paying you it. Or using it to employ more people. Tax is tax. In this case, the business could charge the same amount but keep what is currently the VAT portion. It's still tax revenue generated by a business doing work, paid by a consumer who does taxed work elsewhere to get the money, and all the government does is collect the money. Doesn't really matter which tax it is.