VAT avoidance arrangements
HMRC have highlighted 3 specific VAT avoidance schemes on the Spotlights page of their website.
HMRC Spotlights identify specific tax avoidance schemes of which HMRC have become aware and that they consider are not likely to have the legal effect desired by those thinking of using them.
The new ‘Highlights’ section focuses on areas of avoidance where taxpayers have conceded that the tax they have sought to avoid is due. Initially HMRC is highlighting the following three specific VAT avoidance arrangements:
- Artificial leasing.
- Abusive off-shoring of financial structures leading to consumption of services by EU customers.
- VAT avoidance on promotional vouchers issued with sales of services or goods.