The paper provides a review of the first 40 years of VAT in the UK, its role in the European Union, and its future prospects. VAT has been used extensively by governments as a significant revenue raiser, and there is a trend towards broadening the VAT base by reducing exemptions and zero rates. The paper also discusses the complexities of the VAT system under the European Union dimension, the challenges of fraud, and the difficulties in moving to a simplified single market regime. The Association of Chartered Certified Accountants (ACCA) is a global body for professional accountants that aims to offer business-relevant qualifications to people of application, ability, and ambition.
