I don't see how it's even possible to negotiate . VAT countries apply VAT on all domestic transactions (and that includes imports). VAT countries do not apply

I don't see how it's even possible to negotiate . VAT countries apply VAT on all domestic transactions (and that includes imports). VAT countries do not apply VAT on exports because they _rightly_ assume that the importing country will apply VAT or whatever sale tax equivalent is in place in their territory. This is not a distortion. There's really no other way to make it work.