- Milestone Celebration: April 2024 marks the 71st anniversary of Value Added Tax (VAT), which was first implemented by France on April 10, 1954, under economist Maurice Lauré to improve taxation efficiency by taxing only the “value added” at each production stage.
- Global Adoption and Evolution: VAT quickly gained popularity, with over 170 countries adopting it by the 1960s, including the UK in 1973. The system has evolved from initial tiered rates to more streamlined structures, reflecting its adaptability across different economies.
- Future Challenges and Developments: As digital services and global commerce grow, VAT faces challenges like taxing cross-border transactions. Countries are implementing innovative solutions like real-time reporting and AI audits, while the EU introduces reforms to modernize VAT for the digital age.
Source Innovate Tax
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