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You are not spending the first 20 NOK of your sale, you are just collecting them from the customer. If VAT was 0% then your sale would be for 80 NOK.

Sure I am. If I didn't have to collect VAT then I could sell for 100 NOK instead.

It's not my money, but I still have to bill for it and pay it. The customer doesn't get a better product or service because of it.

If the customer didn't pay the VAT, they'd end up paying their taxes some other way and still have less money to spend on your products.