Im just guessing, but perhaps its sort of the same thing we have here in the State of California: A resale license that allows people with retail businesses to purchase goods without paying sales tax since those goods are intended for resale. The theory being that the end userthe final customerpays the tax on the stuff (even for the cost of packaging and other supplies which is calculated into the retail price). Of course, its greatly abused by some in this state who buy stuff using their resale number with no intention of ever reselling the item(s). (In which case, you are supposed to remove the item from inventory and pay sales tax on it.) Of course, that doesnt fit into the VAT model as I understand it (and as Ray pointed out).
If you paid a VAT on the stuff you used to create your product, and/or are required to pay a tax on any sales you make, then you should pass all that cost on to your customers.