UK VAT system shifts tax burden onto consumers, impacting purchasing power.
The article discusses how Value Added Tax (VAT) works in the UK. VAT is a tax charged on goods and services sold in the UK. If a person sells taxable goods above a certain limit, they must register with HMRC and pay VAT on those sales. The tax is ultimately paid by the customers who buy the goods or services. VAT in the UK is governed by the Value Added Tax Act (VATA) 1994.