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EU to rule on mail-order alcohol No change for EU alcohol market
(20 minutes later)
European Union judges are to deliver a ruling in a case that could change the way shoppers buy alcohol and tobacco. The European Court has ruled against making it easier for European consumers to buy cigarettes and alcohol from countries where excise duties are low.
The ruling will decide whether taxes should be paid at home or abroad when people buy the goods in another country and have them delivered to their home. High-duty countries like the UK had risked losing large amounts of revenue.
It could have a big effect in the UK, where taxes are high and many Britons travel to mainland Europe on "booze cruises" for cheaper alcohol. It means that shoppers who want to take advantage of low duty and VAT in other states will still need to go there and bring back the goods themselves.
Bargain hunters could use the internet to find the best deal in the EU. Had the ruling gone the other way, consumers of alcohol and tobacco could have gone on an internet bargain hunt.
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 EU directive the court must interpret class="">Is it the end of the booze cruise? The UK government already loses duty of more than £1bn (1.5bn euros) per year because of booze cruises, and would stand to lose a lot more. 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 EU directive the court had to interpret class="">The booze cruise business
Shopping by telephone or internet would be easier and cheaper than travelling to France, so more people would be likely to desert UK retailers. Observers had predicted an end to Britons going on "booze cruises" to France to buy cheaper alcohol.
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.
Wine loversWine lovers
Duty on a bottle of wine varies from nothing in 13 EU countries, to 2.1 euros in Ireland.Duty on a bottle of wine varies from nothing in 13 EU countries, to 2.1 euros in Ireland.
Q&A: Buying from low-duty countries The European Court has 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. Q&A: Buying from low-duty countries
An adviser to the European Court of Justice has said the club chairman who ordered the delivery should only pay duty in France. The European Court was 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.
But he added that other members of the club, who picked up their delivery from the chairman's garage, should pay Dutch duties. An official adviser to the European Court of Justice had said the club chairman who ordered the delivery should only pay duty in France.
A court spokesman says the judges will not necessarily follow this advice. On this occasion, the judges rejected the adviser's argument.
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."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, have argued that "transported by them" should be strictly interpreted. 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.