clear prop!!! - bang on. Simply removing VAT from flight training would knock 17.5% off frozen ATPL costs - we're not talking pennies!
In a number of JAA countries (for instance Spain, Greece and Denmark), flight training (even type ratings) is NOT subject to VAT. After all, if uni students do not have to fork out VAT, why do student pilots? Ah well, because... you do NOT have student status while flight training!