Table of contents

1. Introduction of VAT law in the UK
2. History of VAT
3. VAT rates
4. Methods of VAT recording
5. Example
6. VAT deadlines
7. VAT retail scheme
8. Flat rate scheme
9. How to submit VAT return
10. Penalties and fines
11. Assessments
12. Making Tax Digital
13. Future of VAT
14. Contact us
15. Disclaimer

Value Added Tax (VAT) is a part of the UK tax system since April 1973. VAT replaced the purchase tax, and currently, it is the third-largest source of the UK government’s revenue, after income tax and National Insurance.

VAT gave rise to certain controversies with issues other than the tax itself.

On the one hand, the opponents claim it to be a regressive tax as the poor people pay a considerable portion of disposable income on VAT than the rich.

On the other, people believe it to be a progressive tax as the consumers who buy more pay more VAT.