Carry out checks and keep records if you’re approved for FHDDS
Source: gov.uk (2025-03-18)

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 (FHDDS).

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 (https://www.gov.uk/guidance/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
You can find out more about non-established taxable persons in who should register for VAT (VAT Notice 700/1) (https://www.gov.uk/government/publications/vat-notice-7001-should-i-be-registered-for-vat).

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 which are flagged as a Movement Reference Number (MRN) in the Customs Declaration Service
- country where the goods are delivered from storage
- notices that you give to 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 £500 for each breach 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:
- use the online tool to check a business VAT registration number (https://www.gov.uk/check-uk-vat-number)
- ask HMRC to check a business VAT exemption number (https://www.gov.uk/government/organisations/hm-revenue-customs/contact/vat-enquiries)
You can find out more about exemption from registration in who should register for VAT (VAT Notice 700/1) (https://www.gov.uk/government/publications/vat-notice-7001-should-i-be-registered-for-vat).

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 (https://assets.publishing.service.gov.uk/media/673c96cf6d3c337b80acc3bf/FHDDS_Notice_of_UK_obligations.odt) (ODT, 28.3 KB) to tell your customers about their UK tax and duty obligations within 30 days of either:
- your approval
- when you started trading with the customer
- when you were told the notice was 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 xxx@xxx.xx (mailto:xxx@xxx.xx)
- 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 help customers meet their obligations, you can be fined up to £3,000.

Problems with the service

HMRC services may be slow during busy times. Check if there are any problems with the Fulfilment House Due Diligence Scheme service (https://www.gov.uk/government/publications/fulfilment-house-due-diligence-scheme-service-availability-and-issues).

Contact HMRC

Contact VAT enquiries (https://www.gov.uk/government/organisations/hm-revenue-customs/contact/vat-enquiries) or email xxx@xxx.xx (mailto:xxx@xxx.xx) if you have any questions about the Fulfilment House Due Diligence Scheme.