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by jkulmala 4203 days ago
It's not what they pay, it's what they get to reduce. If you purchase supplies etc. you get to reduce the VAT you've paid.

So if you have $0 VAT from EU purchases, but $40 VAT from sales, you pay $40. But if you paid $40 VAT from EU purchases, and have $40 VAT from sales, you pay out $0.