VAT was introduced in 1973 by Lord Barber, the chancellor under Sir Edward Heath. VAT started as a simple tax on nearly all goods bought from a business. Since then it has swollen in size, complexity and popularity.
| Tax Year | VAT Rate |
|---|---|
| 1977 | 8% Lower, 12.5% Higher |
| 1978 | 8% Lower, 12.5% Higher |
| 1979 | 15% |
| 1980 | 15% |
| 1981 | 15% |
| 1982 | 15% |
| 1983 | 15% |
| 1984 | 15% |
| 1985 | 15% |
| 1986 | 15% |
| 1987 | 15% |
| 1988 | 15% |
| 1989 | 15% |
| 1990 | 15% |
| 1991 | 17.5% |
| 1992 | 17.5% |
| 1993 | 17.5% |
| 1994 | 17.5% |
| 1995 | 17.5% |
| 1996 | 17.5% |
| 1997 | 17.5% |
| 1998 | 17.5% |
| 1999 | 17.5% |
| 2000 | 17.5% |
| 2001 | 17.5% |
| 2002 | 17.5% |
| 2003 | 17.5% |
| 2004 | 17.5% |
| 2005 | 17.5% |
| 2006 | 17.5% |
| 2007 | 17.5% |
| 2008 | 17.5% |
| 2009 | 17.5% |
| 2010 | 17.5% |
| 2011 | 20% |
| 2012 | 20% |
| 2013 | 20% |