Take note… ☹
Part 3 of the
Finance (No. 2) Act 2017 introduced the Fulfilment House Due Diligence
Scheme (FHDDS) to assist with preventing VAT and customs duties abuses in relation
to the goods imported from outside the EU.
In short, the Act prohibits anyone from carrying on a third
country goods fulfilment businesses unless they have been approved and registered
by HMRC. Anyone who carries on a third country
goods fulfilment business without an approval commits an offence and is liable
to a penalty. The goods are also liable to seizure.
The good news is that (naturally!) EC Group has already gained approval from HMRC to operate as a third country goods fulfilment business. As a result of this, from 1st April 2019 we are obliged to comply with the requirements of the scheme, including maintaining records showing:
customers’ names and contact details
customers’ VAT registration numbers or their VAT exemption reference
type and quantities of goods stored in our warehouse
country where the goods are delivered
that we’ll need to give our overseas customers, which explain their tax
and duty obligations in the UK.
HMRC will soon be publishing details of business approved under the
FHDDS – for more information, go to www.gov.uk/guidance/fulfilment-house-due-diligence-scheme