IMHO that is very misleading in this context where there are a lot of Americans.
If the VAT rates went to 0% you would still get to keep the exact same amount as with the current 25% rate. And when discussing B2B prices VAT is never included, as it is generally not an expense for the company but rather just an accounting detail.
I would include VAT. No matter B2B or not, it's how much your end customer pays is what matters. Yes, business will pass on this tax further, but end consumer won't be able to claim it. It's the same as a sales tax in the US. To include it in price or not is more a psychological thing (in the US it's not included in price). When I pay $106.25 for something it makes a little difference for me that $6.25 goes to my state or passed to the previous business, and if I only have $100 you lost me. That's the reality.
Basically it's very similar to debates about US taxes. Sure, it's not 70%, but things add up quickly. Income tax, social security, medicare, medical insurance, sales tax. The usual argument is "but, but ... it's not me who is paying my medical insurance or half of social taxes, it's my employer, so it's not my tax". Well, it is. That's the money your employer would have paid _you_ if those taxes hadn't existed.
Not to mention, things that fall outside of capital / income taxes which increase the overall percentage in sneaky ways in the US: car registration fees, the death tax, property taxes, student loan repayments (depending on your view of subsidized university).
