AWRS registration and alcohol duty for online sellers
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Selling alcohol online in the UK involves more paperwork than most ecommerce categories. Depending on what you do, you may need a premises licence to sell alcohol, registration under HM Revenue and Customs' (HMRC) Alcohol Wholesaler Registration Scheme (AWRS) to sell to other businesses, and approval to pay alcohol duty or hold stock in duty suspension.
Getting it wrong carries real risk. Trading without AWRS approval is an offence, stock bought from unapproved wholesalers can be seized, and selling alcohol without the right licence can lead to prosecution.
This guide covers the licences and registrations online alcohol sellers need, how licensing works for online sales, AWRS registration, how excise duty on alcohol works in the UK, duty suspension and bonded warehouses, and how to choose between a duty-paid and a bonded Third-Party Logistics (3PL) provider.
The licences and registrations alcohol sellers need
The requirements depend on whether you make, import, wholesale or retail alcohol, and where your stock is held. A drinks brand can easily do more than one of these.
Requirement | Who needs it | What it covers |
Premises licence | Anyone selling alcohol to the public | Authorises the sale of alcohol from a specific premises, issued by the local licensing authority |
Personal licence | The designated premises supervisor and anyone else authorising sales | Allows an individual to authorise alcohol sales |
AWRS approval | Businesses selling alcohol to other businesses at or after the duty point | Approval from HMRC to trade as an alcohol wholesaler |
Alcohol duty approval | Producers of alcohol | Approval from HMRC to produce alcohol and account for duty |
Excise warehouse approval | Warehouses holding alcohol in duty suspension | Approval from HMRC to store duty-unpaid goods |
Owner of warehoused goods registration | Businesses that own alcohol held in duty suspension | Registration with HMRC to own goods in an excise warehouse |
A direct-to-consumer brand buying duty-paid stock and selling only to the public usually needs a premises licence covering the sale. A brand that also sells to pubs, shops or other retailers needs AWRS approval. A brand importing or producing its own drinks also needs to handle excise duty.
Do you need an alcohol licence to sell online?
Yes. Selling alcohol to the public online is a licensable activity, just like selling it in a shop.
England and Wales: under the Licensing Act 2003, the sale takes place where the alcohol is appropriated to the contract, which usually means the place where it's picked and allocated to an order. For most online sellers, that's the warehouse. The premises where this happens needs a premises licence that covers the sale of alcohol for consumption off the premises, with a designated premises supervisor who holds a personal licence.
Scotland: the Licensing (Scotland) Act 2005 has its own system of premises and personal licences. Scotland also has minimum unit pricing, so alcohol sold to customers in Scotland can't be sold below the minimum price per unit of alcohol.
Wales: Wales also has minimum unit pricing, alongside the Licensing Act 2003. Check the current rate before you set prices for Welsh customers.
Northern Ireland: alcohol licensing works differently again, so take advice before selling there.
Using a 3PL: if your stock sits in a 3PL's warehouse and orders are picked there, check whether the 3PL holds a premises licence that covers alcohol sales from that site, and how it works with your own licensing. Take legal advice on the right structure for your business.
Age checks: it's an offence to sell alcohol to anyone under 18. Online sellers need age verification at checkout and on delivery. Some carriers offer age-verified delivery services that run Challenge 25 checks on the doorstep and return the parcel if the recipient can't prove their age.
Labelling rules apply too. Drinks above 1.2% ABV must show their alcohol strength and any allergens, although they're currently exempt from mandatory ingredient lists and nutrition declarations.
AWRS registration explained
The Alcohol Wholesaler Registration Scheme was introduced by HMRC to tackle alcohol fraud. Under Excise Notice 2002, any business with a UK establishment that sells, offers or arranges to sell alcohol to other businesses at or after the point excise duty is due must be approved by HMRC.
Who needs AWRS registration: wholesalers, brokers, cash and carries, producers selling duty-paid stock to trade customers, and retailers that regularly sell to other businesses. For a drinks brand, that means you'll need it if you supply pubs, restaurants, shops, delis or other retailers.
Who doesn't: businesses that only sell alcohol to the public don't need AWRS approval. Licensed retailers that don't set out to sell to other businesses are also exempt, even if they make the occasional incidental trade sale.
How to apply: you apply online through HMRC. HMRC checks that the business and the people running it are "fit and proper", which can include looking at their compliance history and supply chain. Once approved, you'll receive a Unique Reference Number (URN) of four letters and 11 numbers, which you must show on your wholesale invoices.
Trade buyers' duty: businesses buying alcohol from a UK wholesaler to sell on must check the wholesaler's URN using HMRC's online look-up service, and keep checking regularly. Buying from an unapproved wholesaler is an offence.
Penalties: trading without approval, or buying from an unapproved wholesaler, can lead to financial penalties, seizure of stock and criminal prosecution.
Excise duty on alcohol in the UK
Alcohol duty is an excise tax charged on alcoholic drinks produced in or imported into the UK. It's paid once, at the duty point, usually when the drinks leave a producer's premises or an excise warehouse for sale, or when they're imported duty-paid.
How it's calculated: since 1 August 2023, all alcoholic drinks have been taxed by their strength. Duty is charged per litre of pure alcohol, with rates set by alcohol by volume (ABV) band and product type. Stronger drinks pay more, and the old separate systems for beer, cider, wine and spirits have been replaced.
Small Producer Relief: producers making less than 4,500 hectolitres of pure alcohol a year can get reduced rates on products below 8.5% ABV, as long as the products aren't made under licence.
Draught Relief: lower rates apply to qualifying drinks below 8.5% ABV sold in large draught containers, mainly for pubs and bars.
Who pays: producers pay duty on what they make and release for sale. Importers pay when goods enter the UK duty-paid or leave duty suspension. If you buy duty-paid stock from a UK producer or wholesaler, duty is already included in the price.
Returns and payments: since 1 March 2025, producers and importers have used HMRC's alcohol duty online service to submit a single return covering all their alcohol products and premises.
Rate changes: rates are usually uprated each year. The government published changes to alcohol duty rates and Small Producer Relief on 28 October 2026, taking effect from 1 February 2027. Check the latest rates before you set prices for 2027.
Duty suspension and bonded warehouses
Duty suspension lets you hold alcohol without paying duty until it's released for sale in the UK. The goods are stored in an excise warehouse, often called a bonded warehouse, approved by HMRC.
How it works: stock arrives in the bonded warehouse duty-unpaid. Duty becomes due only when goods are released for consumption in the UK, for example when they're moved to a duty-paid warehouse or dispatched to a customer. Goods exported or sent to another bonded warehouse can stay in suspension.
Who needs to be approved: the warehouse operator must be an approved excise warehousekeeper, and businesses that own goods held in duty suspension usually need to be registered with HMRC as owners of warehoused goods. Duty-suspended movements between approved premises are recorded through HMRC's electronic movement system.
Why brands use it:
Cash flow: you pay duty only when stock is released, instead of when it arrives. For high-duty products such as spirits, that can free up a lot of working capital.
Exports: stock shipped abroad from bond can leave without UK duty being paid.
Stock holding: wine and spirits that are held for long periods, or sold in bond to other traders, don't tie up duty while they wait.
The trade-offs: bonded warehouses are tightly controlled, with more paperwork, security and record-keeping. Not every bonded warehouse offers fast, single-order ecommerce fulfilment, so some brands use a bonded warehouse for bulk stock and a duty-paid 3PL for customer orders.
Duty-paid or bonded: choosing a 3PL
Alcohol 3PLs usually operate as either duty-paid warehouses, bonded warehouses, or both. The right choice depends on your products, volumes and sales channels.
Option | How it works | Best for | Watch out for |
Duty-paid 3PL | Stock arrives with duty already paid and is fulfilled like any ecommerce product | Direct-to-consumer brands buying duty-paid stock | Duty is paid upfront on everything you hold |
Bonded 3PL | Stock is held in duty suspension, and duty is paid as goods are released | Importers, producers and brands with high-duty products or exports | More paperwork, and not every bonded site handles single ecommerce orders |
Both | Bulk stock is held in bond and released in batches to a duty-paid site or pick face for orders | Growing brands balancing cash flow and fast fulfilment | Two sets of processes to manage |
Whatever the setup, an alcohol 3PL should handle fragile glass well, offer age-verified delivery options and understand the licensing position for sales from its site. Our guides to wine storage and temperature control and shipping restricted goods cover storage and shipping in more detail.
Questions to ask an alcohol fulfilment 3PL
Use these questions alongside our questions for a 3PL discovery call when you compare providers.
Licensing: does your site hold a premises licence covering alcohol sales, and how does it work alongside my own licensing?
Bonded or duty-paid: do you offer bonded storage, duty-paid storage or both?
Duty suspension: if you're bonded, how are releases from bond handled, and how quickly can stock move to a pick face for orders?
AWRS: if I sell to trade customers through you, how do you support my AWRS obligations, including showing my URN on invoices?
Age verification: which carriers and services do you use for age-verified delivery?
Breakages: how do you pack glass bottles, and what's your breakage rate?
Storage conditions: can you store wine and other sensitive products within a controlled temperature range?
Exports: can you ship to the EU and other markets, including from bond?
Security: how do you protect high-value spirits and wine from theft?
Experience: which drinks brands do you already work with?
AWRS and alcohol duty FAQs
What is AWRS registration?
AWRS is HMRC's Alcohol Wholesaler Registration Scheme. Businesses that sell alcohol to other businesses at or after the duty point must be approved under it, and receive a Unique Reference Number to show on their invoices.
Do I need AWRS to sell alcohol online?
Not if you only sell to the public. You need AWRS approval if you sell alcohol to other businesses, such as pubs, restaurants or shops.
Do I need an alcohol licence to sell online?
Yes. In England and Wales, the sale takes place where the alcohol is appropriated to the order, usually the warehouse, and that premises needs a licence covering alcohol sales. Scotland and Northern Ireland have their own licensing systems.
How is excise duty on alcohol calculated in the UK?
Since 1 August 2023, duty has been charged per litre of pure alcohol, with rates set by ABV band and product type. Small Producer Relief and Draught Relief can reduce the rate for qualifying products below 8.5% ABV.
What is duty suspension?
Duty suspension means holding alcohol in an HMRC-approved excise warehouse without paying duty until it's released for sale in the UK. Goods exported from bond can leave without UK duty being paid.
Should I use a bonded or duty-paid 3PL?
A duty-paid 3PL suits brands buying duty-paid stock for direct sales. A bonded 3PL suits importers, producers and brands with high-duty products or exports. Some brands use both.
Find a 3PL for your drinks brand
Selling alcohol online comes down to having the right licence for your sales, AWRS approval if you sell to other businesses, a clear approach to duty and a 3PL that's set up for alcohol. Compare alcohol fulfilment providers on fulfilment.com and get quotes from duty-paid and bonded 3PLs.
