(VAT)
a tax levied on the supply of goods or services in the UK and on the importation of goods into the UK. The imposition of VAT was required as a condition of the UK's entry into the European Community, and the original provisions were contained in the Finance Act 1972; the basic statutory provisions are now consolidated in the Value Added Tax Act 1983. Corresponding taxes exist in all other EC member states, and a similar (although not identical) Goods and Services Tax is levied in New Zealand and Canada.
Collins dictionary of law. W. J. Stewart. 2001.