Actually, and maybe I'm missing something, they are quite wrong. Yes you pay a VAT on components, but as a business you reclaim it and pass it down the line.
As long as you are engaging in commerce you never pay VAT on the items you for your business. Also, there are electronic schemes to speed up the reclamation process. If you have a business ¿TaxID? number some resellers will drop the VAT for you knowing they'll reclaim it anyway.
Import components -> (pay VAT) build item (reclaim VAT) -> (pay VAT) wholeseller (reclaim VAT) -> (pay VAT) retailer (reclaim VAT) -> (pay VAT) buyer.
As long as you are engaging in commerce you never pay VAT on the items you for your business. Also, there are electronic schemes to speed up the reclamation process. If you have a business ¿TaxID? number some resellers will drop the VAT for you knowing they'll reclaim it anyway.