Don’t get the tax blues over your booze cruise
ACCA (the Association of Chartered Certified Accountants) warns people not to let duty allowances dampen the Christmas spirit when they buy alcohol and cigarettes from abroad – both online or whilst on a ‘booze cruise’ across the Channel.
Many do not properly educate themselves about the VAT duty rules that are applicable to products bought on a booze cruise or online and, as ACCA’s head of taxation Chas Roy-Chowdhury warns, this ignorance could worsen the situation of many families trying to make Christmas a little cheaper in 2008.
Chas Roy-Chowdhury says: “As long as people adhere to the EU guidelines, they will be able to enjoy a well-stocked, stress-free Christmas that avoids any tax misunderstandings.”
The rules state that:
• You can bring back cigarettes and spirits if they are for personal use only
• Goods brought back for commercial purposes will be subject to UK rates of VAT and excise duties.
Some countries, however, do set restrictions:
• Czech Republic: 200 cigarettes or 250g of smoking tobacco, 50 cigars or 100 cigarillos
• Estonia: 200 cigarettes or 250g of smoking tobacco
• Hungry, Latvia, Lithuania, Poland, Slovakia, Slovenia: 200 cigarettes.
Roy-Chowdhury added: “Goods purchased via the Internet are liable for UK excise rates, which makes booze cruises the more attractive option for many.
However, there is also the issue of whether people can readily access the HM Revenue & Customs’ definitions of ‘own use’ and ‘commercial purposes’. The message is, if in doubt, check with HMRC.”
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Notes to Editors
1. ACCA is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. We have 325,000 students and 122,000 members in 170 countries worldwide.
2. ACCA has worked with governments, national organisations and development agencies in emerging economies- for over 20 years- promoting the accounting profession, to create value for the communities, businesses and individuals it serves.
3. ACCA believes that globalisation of business means that one set of reporting standards is essential. We favour the principles-based IFRS.
4. ACCA understands the real issues facing small businesses as 63,000 of our members work in SMEs or small partnerships worldwide.
For further information please contact:
For further information, please contact: Chas Roy-Chowdhury, ACCA Head of Taxation phone: +44 (0) 20 7059 5976 mobile: +44 (0) 7710 707516
Hannah Blackburn, ACCA Newsroom Phone: +44 (0)20 7059 5989