You're right in everything. The key difference between a business running a deficit in VAT and a deficit in profits (a loss), is that the business gets paid by the taxman for the deficit in VAT, but not for any deficit in profits.
However, regarding the discussion if it "evens out" for a business on VAT in and VAT out, investments shouldn't be considered, since they are investments and not product or part of revenue. Not only can a business deduct VAT from their investments, they can deduct the entire cost from taxes, divided over several years if they want.
> which is the reason why you don't need to pay VAT when purchasing it.
Technically you always have to pay the VAT, but then you reclaim it, as I'm sure you know. Internally that is. If it's imports then it's more complicated and differs between countries.
However, regarding the discussion if it "evens out" for a business on VAT in and VAT out, investments shouldn't be considered, since they are investments and not product or part of revenue. Not only can a business deduct VAT from their investments, they can deduct the entire cost from taxes, divided over several years if they want.
> which is the reason why you don't need to pay VAT when purchasing it.
Technically you always have to pay the VAT, but then you reclaim it, as I'm sure you know. Internally that is. If it's imports then it's more complicated and differs between countries.