DASVOIT ― notifiable arrangements and making the notification

Produced by Tolley
DASVOIT ― notifiable arrangements and making the notification

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • DASVOIT ― notifiable arrangements and making the notification
  • Notifiable arrangements
  • The five ‘tests’
  • Test 1
  • Test 2
  • Test 3
  • Test 4
  • Test 5
  • Who has a duty to disclose?
  • Notifiable arrangements marketed by promoters outside the UK
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

This guidance note provides an overview of the types of DASVOIT notifiable arrangements and the procedure that must be used in order to make the relevant notification to HMRC.

This note should be read in conjunction with the Disclosure of tax avoidance schemes for VAT and other indirect taxes (DASVOIT) ― introduction, DASVOIT ― the hallmarks and DASVOIT ― penalties and powers guidance notes.

The Disclosure of tax avoidance schemes for VAT and other indirect taxes (DASVOIT) ― introduction guidance note provides a definition of the types of persons who could be involved in a notifiable arrangement.

Notifiable arrangements

If all of the following criteria have been met, the arrangement or proposal is notifiable and must be disclosed to HMRC using the prescribed method:

  1. they will, or might be expected to, enable any person to obtain a tax advantage

  2. that tax advantage is, or might be expected to be, the main benefit or one of the main benefits of the arrangements

  3. they are arrangements that fall within any description (the ‘hallmarks’) prescribed in the Notifiable Arrangements Regulations

HMRC VAT notice 799; The Indirect Taxes (Disclosure of Avoidance Schemes) Regulations 2017, SI 2017/1215; The Indirect Taxes (Notifiable Arrangements) Regulations 2017, SI 2017/1216; Finance (No 2) Act 2017, s 66, Sch 17

HMRC has devised five tests (described below) that must be used in order to determine whether or not the above criteria have been met.

The five ‘tests’

Test 1

Are there arrangements that enable an indirect tax advantage to be obtained?

Please see the Disclosure of tax avoidance schemes

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