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:
- overseas customers’ names and contact details
- overseas customers’ VAT registration numbers or their VAT exemption reference numbers
- the type and quantities of goods stored in our warehouse
- import entry numbers
- the country where the goods are delivered
- notices 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