When was VAT introduced in the UK ?
VAT (value-added tax) was introduced in the United Kingdom on April 1, 1973. VAT is a consumption tax that is applied to the sale of goods and services in many countries. In the UK, the standard VAT rate is 20%, which applies to most goods and services. However, there are also reduced rates and exemptions for certain goods and services.
VAT was introduced in the UK as part of a broader effort to harmonize the tax systems of the European Economic Community (EEC), which was the precursor to the European Union (EU). Prior to the introduction of VAT, the UK had a complex system of indirect taxes, including purchase tax, selective employment tax, and entertainment tax. The introduction of VAT simplified and unified this system, making it easier for businesses to comply with the tax laws.
Since its introduction in 1973, VAT has become an important source of revenue for the UK government. It is a significant contributor to the government's overall tax revenue, and it is used to fund a range of public services and programs.