IoM Implements New Fulfillment Business VAT Rules
by Amanda Banks, Lowtax.net, London
02 April, 2018
The Isle of Man Treasury has begun registering firms for a new value-added tax due diligence scheme – the Fulfilment House Due Diligence Scheme – which is intended to ensure overseas traders comply with value-added tax regulations.
The scheme is identical to that implemented in the UK and targets businesses who store goods imported from outside the EU for or on behalf of someone outside the EU.
The new scheme is intended to make it more difficult for non-compliant overseas businesses to trade on the island and will enable the Isle of Man Treasury to identify and tackle them more easily.
Fulfillment businesses located on the island will have to register with the island's Treasury, keep certain records, and carry out robust due diligence checks on their overseas customers.
Those trading as a fulfillment business before April 1, 2018, will need to register by June 30, 2018, while those trading after April 1, 2018, have until September 30, 2018, to register. Guidance on registration has been released by the island's Customs and Excise Division.
The full provisions of the scheme come into operation on April 1, 2019, when any person (including corporate bodies) carrying on a third country goods fulfillment business and not approved by the Treasury will commit an offence.
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