EU blocks cheap alcohol online
The "booze cruise" tradition goes on
The European Court of Justice has ruled against allowing consumers to buy drinks and cigarettes online at lower duties from other countries.
Shoppers wishing to get the benefit of buying cheaper goods abroad have to accompany the goods back themselves.
It had been feared a ruling going the other way would have hit thousands of UK retailers and could have spelled the end for the "booze cruise".
The decision will come as a relief to the Treasury and ferry firms.
The UK government already loses duty of more than £1bn (1.5bn euros) per year because of booze cruises, and would have stood to lose a lot more.
Q&A: Buying from low-duty countries
Duty on a bottle of wine varies from nothing in 13 EU countries, to 2.1 euros per 75cl in Ireland.
The European Court had been asked to interpret EU law by the Dutch Supreme Court, after a Dutch wine club objected to being charged duty on a lorry-load of wine delivered from France.
The EU directive in question states: "As regards products acquired by private individuals for their own use and transported by them... excise duty shall be charged in the member state in which they are acquired."
A number of EU states, including the UK, had argued that "transported by them" should be strictly interpreted.
The UK could stand to lose more than most countries by a change in the law.
A carton of cigarettes bought at Latvian rates, for example, would be seven times cheaper than in the UK.
A country like France could benefit from the extra business, and the VAT.
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Bugger!
The "booze cruise" tradition goes on
The European Court of Justice has ruled against allowing consumers to buy drinks and cigarettes online at lower duties from other countries.
Shoppers wishing to get the benefit of buying cheaper goods abroad have to accompany the goods back themselves.
It had been feared a ruling going the other way would have hit thousands of UK retailers and could have spelled the end for the "booze cruise".
The decision will come as a relief to the Treasury and ferry firms.
The UK government already loses duty of more than £1bn (1.5bn euros) per year because of booze cruises, and would have stood to lose a lot more.
Q&A: Buying from low-duty countries
Duty on a bottle of wine varies from nothing in 13 EU countries, to 2.1 euros per 75cl in Ireland.
The European Court had been asked to interpret EU law by the Dutch Supreme Court, after a Dutch wine club objected to being charged duty on a lorry-load of wine delivered from France.
The EU directive in question states: "As regards products acquired by private individuals for their own use and transported by them... excise duty shall be charged in the member state in which they are acquired."
A number of EU states, including the UK, had argued that "transported by them" should be strictly interpreted.
The UK could stand to lose more than most countries by a change in the law.
A carton of cigarettes bought at Latvian rates, for example, would be seven times cheaper than in the UK.
A country like France could benefit from the extra business, and the VAT.
------------------------------------------------------------------------
Bugger!
Comment