Except it does not apply to currencies, because as the name says it is value ADDED tax. What is exactly taxed is the amount that was added from buying to selling the good. For example a shop buys chocolate for 0.5 a price and sells it for 1. The shop will then pay the VAT on the 0.5 that was added. As a consumer you don't see this, because you pay the VAT for each step and originally the value stared with 0. This is complicated by the technicality that the bulk of the VAT is actually payed by the store selling to the consumer, but they are just routing the taxes of others, since they got their products VAT exempt.
But that is not true to currencies. For example if I "buy" USD for EUR, no value was added. Although the exchanges take a fee (which may contain VAT), but the value only converted. This is the same for gold and in some areas silver coins for example, since they are considered a currency. The assertion that BTC is a currency and value is only converted, not added, is totally correct.