Alcohol Wholesaler Registration Scheme
Overview*
This scheme is relevant to all hospitality businesses which buy and sell alcohol. From 1 January
2016 the scheme will only apply to wholesalers. From 1 April 2017, it will also apply to any
businesses that sell alcohol directly to consumers and businesses must ensure they only buy
alcohol from approved suppliers.
What is the Alcohol Wholesaler Registration Scheme?
The AWRS is being introduced to reduce the risk of illicit alcohol, on which no duty has been paid,
being sold to unsuspecting consumers. According to HMRC, the scheme will reduce the estimated
£1.3 billion in public money lost each year to alcohol duty fraud and lessen the damage to legitimate
businesses hurt by increased competition from illicit trading.
From 1 January 2016, HM Revenue & Customs (HMRC) will require all alcohol wholesalers to
undergo evaluation under the Alcohol Wholesaler Registration Scheme (AWRS). Any businesses that
sell alcohol directly to consumers must ensure they only buy alcohol from approved suppliers from 1
April 2017.
Does this apply to you?
Under the scheme, alcohol wholesalers will have to register with HMRC and pass checks in order to
sell alcohol. From 1 January 2016, all existing and new wholesalers are required to apply online for
approval.
Businesses that buy alcohol from wholesalers and sell to consumers (‘trade buyers’), including
retailers, hotels, pubs, restaurants, cafes and clubs, do not need to apply unless they also sell alcohol
to other businesses. However from 1 April 2017, all trade buyers must ensure they only buy alcohol
from providers approved by HMRC under this scheme. The scheme won’t apply to private individuals
buying alcohol from retailers.
What do trade buyers need to do?
Alcohol trade buyers, including hotels and restaurants, should take the following steps to ensure
they are sourcing only genuine tax paid alcohol in their supply chains:
 Check that your current wholesalers are aware of the scheme to best prepare for the policy
changes.
 From 1 April 2017, make sure any UK wholesalers you buy from are registered with HMRC.
HMRC will be introducing an online look-up service for trade buyers to ensure their
wholesalers are approved. This database will provide greater certainty regarding the
legitimacy of trade partners and remove the excuse of ignorance for businesses that choose
to trade with unauthorized wholesalers. Using this database will form part of the buyers
‘due diligence’ processes.
Penalties
New criminal and civil sanctions will be introduced for wholesalers and trade buyers caught
purchasing alcohol from non-registered wholesalers.
There will be penalties for wholesalers trading without having submitted their application to HMRC
from 1 April 2016. There will also be penalties for trade buyers who purchase alcohol from
unregistered wholesalers from 1 April 2017.
Updated 28 September 2015
*This information is provided by the British Hospitality Association. The content is provided for general information only and must not be used for giving legal or other professional
advice. Whilst every care has been taken to ensure the accuracy of content, the authors accept no responsibility for loss or consequential loss occasioned to any person acting or
refraining from action as a result of any statement in it.
For more information:
For more information sign up to view the Alcohol Wholesale webinar.
For more information on this topic, please email our Policy Manager, Lucy Aldrich-Smith:
[email protected]
Updated 28 September 2015
*This information is provided by the British Hospitality Association. The content is provided for general information only and must not be used for giving legal or other professional
advice. Whilst every care has been taken to ensure the accuracy of content, the authors accept no responsibility for loss or consequential loss occasioned to any person acting or
refraining from action as a result of any statement in it.