HMRC has announced a technical consultation on the draft statutory instrument for the fulfilment house due diligence scheme (FHDDS), which applies to businesses that store any goods imported from outside the EU for or on behalf of someone outside the EU, and is designed to address concerns over VAT payments by online retailers
Following a public consultation in summer 2016, primary legislation introducing the scheme is currently under consideration by parliament as part of the Finance (No 2) Bill 2017.
To complete the legislative framework for the scheme, a statutory instrument is required.
The Fulfilment Business (Approval Scheme) Regulations 2018 set out in detail the application process, obligations of third country goods fulfilment businesses and penalties.
The technical consultation seeks comments from stakeholders on the draft statutory instrument.
In particular, HMRC says it is looking for feedback on the impact on fulfilment businesses in applying the obligations of the scheme, including record-keeping requirements; whether the provisions for group registrations in Part 5 will be beneficial to group companies; and the impact of the scheme on small and micro businesses.
HMRC says the consultation is of interest to businesses in the warehousing, storage, fulfilment, imported goods and transport sectors, as well as those involved in e-commerce.
The deadline for comments is 15 December.
Open consultation Draft legislation: the Fulfilment Businesses (Approval Scheme) Regulations 2018 is here.
Report by Pat Sweet
