Guidance

Carry out checks and keep records if you’re approved for FHDDS

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:

  • keep records

  • carry out checks on your overseas’ customers

  • give notices to your overseas’ customers

Keep records

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 the Notice of UK obligations (ODT, 29.4KB) to 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:

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 HMRC

Contact Excise: enquiries if you have any questions about the Fulfilment House Due Diligence Scheme.

Published 28 February 2019
Last updated 11 March 2021 + show all updates
  1. The notice of UK obligations has been updated.

  2. This page has been updated because the Brexit transition period has ended.

  3. An email address to tell HMRC if a customer is not meeting their Fulfilment House Due Diligence Scheme obligations has been added.

  4. First published.