Value-added tax and excise duties — exemptions for travellers from outside the EU

SUMMARY OF:

Directive 2007/74/EC — exemption from value added tax and excise duty of goods imported by persons travelling from non-EU countries

WHAT IS THE AIM OF THE DIRECTIVE?

It defines EU tax-free allowances in international travel.
It lays down rules relating to the exemption from value-added tax (VAT) and excise duty of goods imported into the personal luggage of travellers from:
- a non-EU country or
- a territory where EU laws on VAT and/or excise duty do not apply, e.g. the Isle of Man.

KEY POINTS

The directive sets a value threshold for exemptions from excise duties at €430 in the case of air and sea travellers and at €300 for those travelling by land (including by inland waterways).
EU countries may lower the value threshold for travellers aged under 15, whatever their means of transport, but this threshold may not be lower than €150.
EU countries may lower the value thresholds and the quantitative limits for:
- travellers who live in a border area;
- cross-border workers; and
- the crews of means of transport used in international travel.
The directive sets the following higher or lower quantitative limits for imports of tobacco:
- 200 cigarettes or 40 cigarettes; or
- 100 cigarillos or 20 cigarillos; or
- 50 cigars or 10 cigars; or
- 250 g smoking tobacco or 50 g smoking tobacco; or
- a combination of the tobacco products listed above, provided that the total amount does not exceed 100% of the permitted limit.
EU countries may choose to distinguish between air travellers and other travellers by applying the lower quantitative limits to the other travellers.
The directive sets the following limit on quantities of imports of alcohol other than still wine and beer:
- a total of 1 litre of an alcoholic strength exceeding 22% vol. or undenatured ethyl alcohol* of 80% vol. and over; or
- a total of 2 litres of alcohol of a strength not exceeding 22% vol; or
- a combination of the alcohol products listed above, provided that the amount does not exceed 100% of the permitted limit.
The directive sets the following limit for quantities of imports of still wine and beer:
- a total of 4 litres of still wine; and
- a total of 16 litres of beer.
Exemptions for tobacco and alcohol do not apply to travellers under 17 years old.
Standard tanks of any means of motor transport carrying fuel are exempt from paying excise duties on that fuel; they also do not have to pay excise duties on up to 10 litres of fuel held in a portable container.
Every 4 years the European Commission reports to the Council on the directive’s implementation. The most recent report, published in 2013, states that most EU countries are content with the directive and do not see any need to revise it.

FROM WHEN DOES THE DIRECTIVE APPLY?

It has applied since 1 December 2008 and had to become law in the EU countries by the same date.

BACKGROUND

For more information, see:

Entering the EU (European Commission).

KEY TERMS

Undenatured ethyl alcohol: alcohol that has not had anything added to it to make it undrinkable.

MAIN DOCUMENT

Council Directive 2007/74/EC of 20 December 2007 on the exemption from value added tax and excise duty of goods imported by persons travelling from third countries (OJ L 346, 29.12.2007, pp. 6-12)