UK launches VAT accounting system for implementing firms

The UK government has launched the Due Diligence Fulfillment (FHDDS) system, which is designed to ensure that online procurement firms (order executors) report VAT payments. The system monitors which companies must pay VAT and which do not.

Companies that purchase, store or sell goods in the UK that are not manufactured in the European Union are required to register in the said system. However, the law provides for exceptions. So, transport companies that must temporarily store goods as a service (for example, at night) are not required to register.

The introduction of the scheme was envisaged by the government in the 2016 budget plan as part of a package of measures to combat tax evasion through the registration of foreign structures.

On materials of the following website: https://www.lawandtax-news.com/asp/UK_Launches_VAT_Due_Diligence_Scheme_For_Fulfillment_Firms____76660.html