There is nothing illegal about it .....
The price is set by the MorphOS-team and wether the take the effort to reclaim unneeded VAT from the tax-collector or not is none of your buisness.
I would think the whole Ralph Schmidt Softwareentwicklung is setup as a small buisness where you only fill out a simplified tax sheet (and pay lower overall tax) but therefore can't reclaim some expenses or allready paid VAT.
Ralph Schmidt Softwareentwicklung is not a small business by the definition of "Kleingewerbetreibender". If so he wouldn't be allowed to issue VAT on the invoice. If you use the small business rule you cannot get VAT refunded but must not charge VAT on your offerings.
Charging the VAT is rather the only option to avoid serious trouble with the authorities.
