If you sell alcohol to another business you may need to apply to register for the Alcohol Wholesaler Registration Scheme (AWRS). This scheme was introduced by HM Revenue and Customs (HMRC) to tackle alcohol fraud.
If you only sell alcohol to the general public and not to other businesses you won’t need to apply.
From 1 April 2017, if you buy alcohol to sell from a UK wholesaler, you’ll also need to check that whoever you buy from has registered with HMRC and has an AWRS Unique Reference Number (URN). HMRC will provide an online look up service so that trade buyers can ensure the wholesalers they buy from are registered.
You should apply for approval if your business is established in the UK and supplies alcohol to other businesses at or after the point at which excise duty becomes due by either:
- selling – this includes to other businesses as well as to the general public
- arranging the sale
- offering or exposing for sale
If your business is affected by the scheme you’ll have to apply for it or face penalties for trading without approval.
Traders who are mainly retailers, but unknowingly or unintentionally make occasional trade sales of alcohol are excluded from AWRS. This can happen if the purchaser is unknown to you and the only indication you might have that the purchase is being made for commercial purposes is if a tax invoice is requested.
These sales are known as ‘incidental sales’. Gov.uk has produced a flowchart to help you decide if you’re covered by the incidental sales exemption, which is available here.
More details about applying for the Alcohol Wholesaler Registration Scheme are available here
HMRC have developed an online webinar which can be viewed at any time, which is available here: Alcohol Wholesaler Registration Scheme
