They pay VAT on the value they add between what they buy and what they sell. Hence, Value-Added Tax.

no they don't, they collect it, but the consumer pays it

this is the entire principle behind VAT

You're actually both right.

A company collects VAT from customers when they purchase. But it also buys from suppliers at a lower value. It pays the difference in the two VAT numbers (from customer-to supplier) to the VAT authority.

Arguably the customer pays all of a companies taxes, after all that’s where the revenue comes from. The bottom line is those taxes all come from the activities of the company.