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

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

  • Disclosure of tax avoidance schemes—VAT and other indirect taxes (DASVOIT)
  • Why does this matter?
  • Background and commencement
  • Which indirect taxes are within the rules?
  • What creates a requirement to disclose?
  • Arrangements and the main benefit test
  • Meaning of tax advantage in relation to VAT
  • Meaning of tax advantage in relation to other indirect taxes
  • Who must make a disclosure?
  • Who is a promoter?
  • More...

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

FORTHCOMING CHANGE relating to Finance Bill 2021–22: Finance Bill 2021–22 (which is expected to be enacted as the Finance Act 2022) will include further measures to counter promoters of tax avoidance schemes. HMRC will be given new powers to freeze the assets of a promoter on whom it is seeking to impose a penalty, publish information about suspected tax avoidance schemes (including the name of the suspected promoter), impose penalties on UK entities that support offshore promoters, and apply to wind up companies that promote tax avoidance. For more information, see News Analysis: Draft Finance Bill 2022—tax avoidance measures.

This Practice Note describes the rules on the disclosure of tax avoidance schemes for VAT and other indirect taxes (DASVOIT).

For the rules on disclosing the avoidance of:

  1. 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), see Practice Note: Disclosure of tax avoidance schemes—SDLT

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

Why does this matter?

The DASVOIT rules make it obligatory to inform HMRC about certain arrangements for avoiding VAT and other indirect taxes. The rules allow HMRC to find out about tax avoidance schemes that it might otherwise not know about,

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