Historical background of VAT

V1.202 Development of TVA

Taxe sur la valeur ajoutée (Value added tax) evolved through successive attempts by French governments to levy a broadly based turnover tax which combined the advantages of single stage and multi-stage taxes without their corresponding disadvantages.

A multi-stage turnover tax was first introduced in 1920 at a flat rate of 1% on most commercial transactions, and was superimposed on a number of existing indirect taxes. The disadvantages of this tax soon became apparent, and it was partly replaced by a series of single stage taxes (taxes uniques) levied on a variety of

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