Autumn Statement 2016: Implementation of the Fulfilment House Due Diligence Scheme

Following Budget 2016, we reported that the Government was targeting fulfilment houses whose overseas business clients were non-compliant with UK VAT rules.

The Government will legislate in Finance Bill 2017 to introduce a new ‘Fulfilment House Due Diligence Scheme’ which will open for registration in April 2018.

The Government had previously announced that fulfilment houses would be held joint and severally liable for the unpaid VAT of non-compliant overseas businesses and that they would set out standards of due diligence and record-keeping required by the fulfilment houses and introduce penalties for non-compliance. The details of the new scheme are awaited.