Value Added Tax (VAT): Its Implementation and Implications

VAT is the most important innovation of the 20th century. It is a scientific tax system which was first introduced in 1954 A.D. in France. It has been spreading all over the 1960''s and now this tax has become one of the mainstays of the tax system in over 145 countries. In Nepal VAT has come into consideration to replace of old indirect taxes. It was introduced on 16th November 1997. As VAT is less distortive and more revenue-productive it has been spreading all over the world.