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.
If you store goods in the UK for sellers established outside the EU, you may need to apply for the Fulfilment House Due Diligence Scheme.
Once you’re approved, you must:
- keep records
- do checks on your overseas’ customers
- give notices to your overseas’ customers
From 1 April 2019, 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 keep these records.
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 the notice to tell your customers about their UK tax and duty obligations by either:
- 30 April 2019 - if you’re already trading with them
- 30 days after you’re approved - if you’re approved after 30 April 2019
- 30 days after you start trading with someone - if you start trading with them after 30 April 2019
- 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
- stop trading with them if they do not correct it 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 do these things, 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 with any queries you have about the Fulfilment House Due Diligence Scheme.