The equivalent in the US is tax exempt status for corporations for resale. For example, if I go into Costco today and buy Pepsi products, I'm going to pay a 7.75% sale tax where I live. However, if I was a business and plan to resell that Pepsi product at the Tennis and Swim Club that I own, I could not have to pay that Sales Tax at Costco. However, when I sold the product at retail at my Club, I collect a sales tax from my club members for 7.75%. In Europe, I'd pay the 7.75% (if the VAT was 7.75%) at Costco, and then when I collect 7.75% from my club members, I'd be able to reduce the amount I remit to the government by the 7.75% I already paid. The amount of total taxes paid is the same if the rates are the same. In the US, only the final consumer pays a sales tax while in Europe everyone pays a tax but gets a credit for the sale/VAT tax already paid (except the final buyer, of course).
Don’t believe you were what you say you were. Your exposition does not support anything other than a beginner’s grasp of how taxes work.
Now move along and find someone else to try out your spiel on.