Disclosure of tax avoidance schemes—VAT and other indirect taxes (DASVOIT)
Disclosure of tax avoidance schemes—VAT and other indirect taxes (DASVOIT)

The following Tax guidance note provides comprehensive and up to date legal information covering:

  • Disclosure of tax avoidance schemes—VAT and other indirect taxes (DASVOIT)
  • Background and commencement
  • Which indirect taxes are within the rules?
  • What creates a requirement to disclose?
  • Who must make a disclosure?
  • Who is a promoter?
  • The indirect tax hallmarks
  • Legal professional privilege
  • Time limits for disclosures
  • How to make a disclosure
  • more

This Practice Note describes the rules on the disclosure of tax avoidance schemes for VAT and other indirect taxes (DASVOIT) that have applied since 1 January 2018.

For the rules on disclosing:

  1. avoidance of income tax, corporation tax, capital gains tax (CGT) and National Insurance contributions (NICs), see Practice Note: Disclosure of tax avoidance schemes—income tax, corporation tax, CGT and NICs

  2. stamp duty land tax (SDLT) avoidance, see Practice Note: Disclosure of tax avoidance schemes—SDLT

  3. inheritance tax (IHT) avoidance, see Practice Note: Disclosure of tax avoidance schemes—IHT

For the rules applying to the disclosure of VAT avoidance schemes prior to 1 January 2018, see Practice Note: Disclosure of tax avoidance schemes—VAT (before 1 January 2018) [Archived].

Background and commencement

The DASVOIT rules (like their direct tax equivalents, the disclosure of tax avoidance schemes (DOTAS) rules) make it obligatory to inform HMRC about certain tax avoidance arrangements. Making a disclosure has no bearing on whether the arrangements have their intended tax outcome. This means, for instance, that if a scheme is legally effective (from the taxpayer's point of view), HMRC will have to legislate to stop it. Equally, being issued with a reference number by HMRC as a result of making a disclosure does not mean that HMRC has sanctioned the arrangement.

The main function of the DASVOIT rules is to allow HMRC to