Disclosure of tax avoidance schemes for VAT and other indirect taxes (DASVOIT) ― introduction

Produced by Tolley

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

  • Disclosure of tax avoidance schemes for VAT and other indirect taxes (DASVOIT) ― introduction
  • Background
  • Terminology
  • Indirect taxes covered
  • Scope
  • Commencement and grandfathering
  • Budget 2021
  • Persons
  • Promoter
  • What is ‘making the scheme available’?
  • More...

Disclosure of tax avoidance schemes for VAT and other indirect taxes (DASVOIT) ― introduction

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 rules that were effective from 1 January 2018 that require a person to officially disclose the use of certain VAT or other indirect tax avoidance schemes.

This guidance note should be read in conjunction with the DASVOIT ― notifiable arrangements and making the notification, DASVOIT ― the hallmarks and DASVOIT ― penalties and powers guidance notes.

Background

The revised reporting rules affect persons who promote or use arrangements from 1 January 2018 that are intended to, or will provide, the user with a VAT or other indirect tax advantage that would not have been obtained had another course of action been taken.

Terminology

TermMeaning allocated by HMRC in respect of DASVOIT
ArrangementsIncludes any scheme, transaction or series of transactions
Tax advantage for VATA person (P) obtains a tax advantage for VAT if:
(a) in any prescribed accounting period, the amount by which the output tax accounted for by P exceeds the input tax deducted by P and is less than it would otherwise be
(b) P obtains a VAT credit when P would otherwise not do so, or obtains a larger credit or obtains a credit earlier than would otherwise be the case
(c) in a case where P recovers input tax as a recipient of a supply before the supplier accounts for the output tax, the period between the time when the input tax is recovered and the time

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