History of VAT

History of vat

Concept of VAT was referred and proposed by Dr. Wilhelm Von Siemens in Germany in 1919.  In 1921 the same type of concept was also suggested by Professor Thomas S. Adams in USA. In 1949 VAT was recommended in JAPAN. The discussion on VAT was started in Germany (1919), USA (1921) and Japan (1949) and the overall world came to know something about VAT from these three initial discussions and references.

VAT was first introduced in France in 1954. See the discussions were started from Germany, USA and Japan but France took the lead and introduced VAT in 1954 and till 1960 remain the only country in the world to have the VAT in their taxation system. Ivory Coast was the second country to introduce VAT in 1960 followed by Senegal in 1961 and Denmark in 1967.

S. No	Name of Country	Year in which it was introduced	Asian Countries
			S. No	Name of Country	Year in which it was introduced
1.	France	1954	1.	South Korea	1977
2.	Ivory Cost	1960	2.	China	1984
3.	Senegal	1961	3.	Indonesia	1985
4.	Denmark/Brazil	1967	4.	Taiwan	1986
5.	Netherlands	1969	5.	Philippines	1988
6.	Sweden	1969`	6.	Japan	1989
7.	Luxembourg	1970	7.	Thailand	1992
8.	Belgium	1971	8.	Singapore	1994
9.	Ireland	1972	9.	Mongolia	1998
10.	Italy	1973	South Asian Countries
11.	United Kingdom	1973	S. No	Name of Country	Year in which it was introduced
12.	Austria	1973	1.	Pakistan	1990
13.	Portugal / Spain	1986	2.	Bangladesh	1991
14.	Greece	1987	3.	Nepal	1997
15.	Finland	1994	4.	Sri Lanka	1998

INDIA introduced VAT in various states as follows

	States	Date of imposition of VAT	Number of States
1.	Haryana	1-4-2003	1
2.	Andhra Pradesh, West Bengal, Kerala, Karnatka, Orissa, NCT of Delhi, Tripura, Bihar, Arunachal Pradesh, Sikkim, Punjab, Goa, Misoraam, Nagaland, Jammu & Kashmir, Manipur, Maharashtra, Himachal Pradesh , Assam & Meghalaya.	1-4-2005	20
3.	Uttaranchal	1-10-2005	1
4.	Rajasthan, Gujrat, MP, Chhatisgarh and Jharkhand.	1-4-2006	5
5.	Uttar Pradesh and Tamil Nadu	After 2006	2