Re: VAT = Turnover tax!!
@AC - Sorry but you're talking bollocks. Any company that manufactures or sells something sells its products at a particular level of profit that allows them to make a living (i.e. pay other costs such as rent, employee wages, etc.). VAT is then added on to this and that is the MINIMUM price offered to customers.
There are no companies that sell at below this point unless its being done for a specific reason (to run the competition out of business (usually through illegal dumping), to act as a loss leader where peple then buy things which earn a profit (supermarkets are a good example - milk is sold at a loss, but then people buy the rest of there groceries and the profit from these covers the loss on the milk), or to try and break into a market (short term discounting). Ignoring these particular special acts, the basic rule is that if you are selling your things at below your overall cost trade off, you will go out of business. You would never include VAT in this calculation, as its not a cost for you.
Now there are some companies that can sell things for higher then their costs (Apple I'm looking at you), and perhaps for these companies you could say they set their overall price at what customers are willing to pay and then subtract VAT, but this is far from common. The reason why this is uncommon is that any company that can sell its products for a very large profit margin will soon find that it has competitors that are willing to sell the same products for a very much reduced margin and so will under cut their prices and lose the original company sales. Apple may be getting away with it (for now), but they"re a re very few others that can...