Tax and Duty Free
Money matters: Taxes and duty free
Since the 1999 ban on duty-free shopping in the European Union, Value Added Tax (VAT) and excise duty have been included in the price of certain goods. But airports, ferry companies, ports and the Channel Tunnel operators absorb one or other of these costs - so travellers do not have to pay them.
EU countries
Duty-free goods
Products free of excise duty or VAT
Only applies to tobacco products and liquor
Now only available in non-EU countries, such as the US
Tax-free goods
Goods free of VAT - currently 17.5% in the UK but will rise to 20% on the 4th January 2011
Applies to perfume, cosmetics, electrical goods, fashion and accessories, gifts, jewellery, souvenirs, watches, photographic equipment and confectionery
Available to all passengers after security control at shops in UK airports, at the Channel Tunnel terminal and at ports
Duty-paid goods
Goods free of the excise duty added to items made and sold in their country of origin
At UK airports, usually applies to limited selections of tobacco products and liquor
Available to travellers visiting EU countries
Sold after security control at UK airports and in shops and supermarkets in EU countries
Customs allowances
By law, travellers can bring in a certain amount of tobacco, liquor and perfume from EU and non-EU countries. Travellers who bring back more than the limit must either prove the goods are for personal use or pay duty and UK VAT on them.
Limits for own-use goods bought in EU countries
Although there are no limits on the amount of alcohol and tobacco you can bring in from most EU countries, customs officers are more likely to ask you questions if you have more than:
• 3,200 cigarettes
• 200 cigars
• 400 cigarillos
• 3 kilograms of tobacco
• 110 litres of beer
• 90 litres of wine
• 10 litres of spirits
• 20 litres of fortified wine (for example port or sherry)
Limits for own-use goods bought in non-EU countries (including the Canary Islands, Channel Islands and Gibraltar):
200 cigarettes or 100 cigarillos or 50 cigars or 250g of tobacco
Two litres of still table wine
One litre of spirits or strong liqueurs over 22% volume, or two litres of fortified wine, sparkling wine or other liqueurs
You can bring in other goods worth up to £390 without having to pay tax and/or duty. OTHER TAXES
AIR PASSENGER DUTY
Also known as departure or airport tax, this is a tax placed on flights leaving the UK.
Some countries may charge visitors a local tax for their return journey as well. It's worth checking before you depart whether this applies to your destination. If it does, you will need to pay the tax in local currency - so keep cash handy.
UK Customs and Excise Department: http://www.hmce.gov.uk
