This year marks 50 years of VAT in the United Kingdom. Although the VAT implementation date (April 1, 1973) coincided with All Fools’ Day, the Chancellor of the Exchequer at the time, Sir Anthony Barber, was rather serious when he made a bold statement that “VAT will be a simple tax on the supply of goods and services”. Despite the initial intention to keep the VAT system “simple”, it soon became clear that a simple tax might not be well suited to handle complex dealings in the increasingly digitalised and interconnected economy. As the tax was catching up with new business models and commercial practices, the regulatory framework was growing in size and complexity. Nearly 30 years after the introduction of the U.K. VAT system, Lord Justice Sedley summarised it as follows: “Beyond the everyday world … lies the world of VAT; a kind of fiscal theme park in which factual and legal realities are suspended or inverted”.
Source: Forbes
Latest Posts in "United Kingdom"
- Fintua Sponsors Indirect Taxes Annual Conference 2025 in London (Nov 12)
- HMRC Guidance: Guidance Check how to tell HMRC about VAT Return errors
- Essential Guide to VAT Refunds for DIY Housebuilders: What You Can and Cannot Claim
- Ed Miliband Hints at Possible VAT Cut on Energy Bills in Upcoming Autumn Budget
- Upper Tribunal Remits VAT Exemption Case for Cosmetic Treatments to First-tier Tribunal
