0191 257 0355

71 Howard Street, North Shields
Tyne & Wear, NE30 1AF


Overseas online VAT abuse

Source: HM Revenue & Customs | | 03/04/2018

The new Fulfilment House Due Diligence Scheme (FHDDS) opened for online applications on 1 April 2018. The FHDDS is part of a package of measure to combat the abuse of VAT rules by online traders based outside the European Union.

Fulfilment houses that store any goods imported from outside the EU on behalf of others, need to apply for approval from HMRC. These businesses will be required to perform proper due diligence on the goods they fulfil and their overseas clients under the umbrella of the FHDDS.

Businesses that only store or fulfil goods that they own, or only store or fulfil goods that are not imported from outside the EU, are not required to register for the FHDDS. The deadline for applications from existing fulfilment businesses falling within the scope of the scheme is 30 June 2018. Businesses that start trading on or after 1 April to 30 June 2018, will need to apply on or before 30 September 2018. There are penalties for late applications.

Planning note

Businesses that meet the FHDDS criteria will not be allowed to trade as a fulfilment business from 1 April 2019, unless they are approved by HMRC and risk a £10,000 penalty and a criminal conviction if they do so.

 

Latest News

  • Tenth anniversary of first Debt Relief Order

    16/04/2019 - More...

    Debt Relief Orders (DROs) were first introduced in April 2009. The DROs assist people who have small levels of assets and insufficient surplus income to deal with debts under

  • Estate Agents targeted

    16/04/2019 - More...

    HMRC has launched an unannounced crackdown on money laundering regulation non-compliance by estate agents. This clampdown resulted in over 50 visits by HMRC staff to estate agents

  • Job related expenses you can claim against your tax

    16/04/2019 - More...

    If you are an employee and use your own money to buy things that you need for your job, you may be able to claim tax relief for the associated costs. It is usually only possible to

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login

Copyright © 2019 - Read Milburn