Carry out checks on your overseas customers and find out what records you’ll need to keep if you’re approved for the Fulfilment House Due Diligence Scheme.
From 1 January 2021 if you store goods in the UK for sellers established outside the UK, you may need to apply for the Fulfilment House Due Diligence Scheme.
Once you’re approved, you must:
carry out checks on your overseas’ customers
give notices to your overseas’ customers
You must keep a record of the:
names and contact details of your overseas’ customers
VAT registration or VAT exemption numbers of your overseas’ customers
type and quantities of goods stored in your warehouse
import entry numbers of goods stored in your warehouse (if they’ve been imported from a third country)
country where the goods are delivered from storage
notices that you to give your overseas customers, which explain their tax and duty obligations in the UK
You must keep these records for 6 years. You can be charged a penalty of up to £500 if you do not.
Check your customers’ details
You must check your overseas customers’ details using their VAT registration number or VAT exemption number.
You can either:
You can be charged a penalty of between £500 and £3,000 if you do not check your customers VAT numbers.
Give a notice to your customers
You must use theto tell your customers about their UK tax and duty obligations before one of the following:
30 days after you’re approved
30 days after you start trading with someone
30 days after you’re told the notice has changed - if HMRC tells you that the notice has changed
If you do not give your customers the notice, you can be fined up to £3,000.
If a customer is not meeting their obligations
If you think a customer is not meeting the obligations set out in the notice you gave them, you must:
tell HMRC within 30 days of you finding out by emailing email@example.com
stop trading with them if they still do not meet their obligations within 60 days of you finding out
not start trading with them
You should work with your customers to help make sure they do meet their obligations in the future.
If you do not you can be fined up to £3,000.
Problems with the service
HMRC services may be slow during busy time. Check if there are any problems with the service.
Contact Excise: enquiries if you have any questions about the Fulfilment House Due Diligence Scheme.