In Europe VAT that is charged by a business and paid by its customers is non recoverable, so for the average customer 1 roll FP4 120 is 3.48 not 2.90.

Only a business is generally able to recover input VAT to the extent that the input VAT is attributable to its taxable outputs. Input VAT is recovered by setting it against the output VAT for which the business is required to account to the government, or, if there is an excess, by claiming a repayment from the government.