More like VAT is a sales tax, by a different name. Regardless of the name, the buyer should pay the same amount of tax whether they buy domestic or from abroad.

More like VAT is a sales tax, by a different name. Regardless of the name, the buyer should pay the same amount of tax whether they buy domestic or from abroad. If VAT wasn't paid when buying from abroad, it would unfairly disadvantage domestic suppliers. (I'm not an accountant, but as far as I know, the same VAT deductions for businesses apply whether they buy from an EU country or from a non-EU country, which your example doesn't take into account.)