EXCISE DUTIES TO REMAIN IN THE EU
The EU's Court of Justice ruled Thursday, November 23 that consumers must pay excise duties when they order alcohol or cigarettes from other EU countries.
The court said "only products acquired and transported personally by private individuals are exempt from excise duty in the member state of importation." The ruling is a setback for Internet companies and other cross-border importers, which had hoped to start selling lower-priced alcohol and cigarettes across the European Union.
Alcohol is taxed at very different rates across Europe and many people in high-tax countries such as Britain, Sweden and Denmark travel abroad to buy cheaper wine and beer for their own use. This practice is allowed under an EU law that says alcohol should be taxed at the rate charged in the country where it is on sale if the goods are for personal use and transported by the purchaser.
EU spokeswoman Maria Assimakopoulou said the European Commission was disappointed with the ruling:
"We believe the court gave a rather restricted interpretation.”
"The Wine and Spirit Trade Association welcomed the decision," said Jeremy Beadles, head of the Wine and Spirits Trade Association. "Any other outcome could potentially have put UK businesses at a serious disadvantage compared to their European counterparts."
The court said "only products acquired and transported personally by private individuals are exempt from excise duty in the member state of importation." The ruling is a setback for Internet companies and other cross-border importers, which had hoped to start selling lower-priced alcohol and cigarettes across the European Union.
Alcohol is taxed at very different rates across Europe and many people in high-tax countries such as Britain, Sweden and Denmark travel abroad to buy cheaper wine and beer for their own use. This practice is allowed under an EU law that says alcohol should be taxed at the rate charged in the country where it is on sale if the goods are for personal use and transported by the purchaser.
EU spokeswoman Maria Assimakopoulou said the European Commission was disappointed with the ruling:
"We believe the court gave a rather restricted interpretation.”
"The Wine and Spirit Trade Association welcomed the decision," said Jeremy Beadles, head of the Wine and Spirits Trade Association. "Any other outcome could potentially have put UK businesses at a serious disadvantage compared to their European counterparts."
posted at 3:10 PM
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