Our beloved to some and devil to others VAT has a long 50 years to celebrate!! However, the government still managed to charge everyone for trade before VAT ever existed.
Before VAT, the UK used to levy a Purchase Tax, charged at a variable rate on wholesale prices of consumer goods. This began in 1940 and ended in 1973, when Britain joined the EEC. Purchase Tax was applied at the manufacturing and distribution end of a transaction, while VAT is charged at point of sale and is an indirect tax because the government receives the payment from the seller.
Source: deeksvat.co.uk
