UK - Fulfilment House Due Diligence


The HMRC Fulfilment House Due Diligence Scheme has opened for registration on April 1st 2018. As reported in a previous article the scheme aims to ensure that fulfilment houses play their part in reducing abuse of VAT rules by online traders based outside the EU.

It is centrepiece of a package of measures designed to combat the abuse of VAT rules by online traders based outside the EU. Anyone that runs a business in the UK such as a warehouse that stores goods imported from outside the EU that are owned by, or on behalf of, someone established outside the EU, will need to apply to register for the scheme.

The deadline for applications from existing fulfilment businesses is June 30th 2018, and businesses that start trading on or after April 1st to June 30th 2018 will need to apply on or before September 30th 2018. HMRC can charge a penalty of up to £500 for late applications.

Approved fulfilment businesses must complete due diligence checks on their overseas customers and maintain records about the goods they store from April 1st 2019.

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. We will keep you updated on how the scheme progresses.

Should you require any VAT assistance in the UK, or require any international VAT assistance, please contact us.



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