Holidaying Britons will be able to buy cheap alcohol on public holidays in Europe again from January under a new post-Brexit regime.
Passengers traveling from Great Britain to EU countries are currently excluded from duty-free. However, this will change as soon as the transition period for leaving the European Union ends on December 31st.
The Treasury Department confirmed today that the British can expect savings of £ 2.86 on a 75cl bottle of Champagne or Prosecco and £ 2.28 on six 50cl cans of four percent ABV beer.
But as "alcohol cruises" are expected to push back the limits on the return of alcohol vacationers, this will increase too.
Passengers traveling from the UK to EU countries are currently excluded from duty-free status. However, this should change as soon as the transition period for leaving the European Union ends on December 31 (file image).
The Treasury Department confirmed today that the British can expect savings of £ 2.86 on a 75cl bottle of Champagne or Prosecco and £ 2.28 on six 50cl cans of four percent ABV beer (file image).
The 'alcohol cruise' phenomenon began in the 1990s when British families traveled to Calais to bring home bargains from wine stores and boxes of alcohol from their vacation.
But enthusiasm waned when British stores started selling cheaper alcohol and the pound lost strength against the euro.
Last year then Chancellor Sajid Javid informed travelers to the EU that they would soon be able to buy cigarettes and alcohol without paying UK excise duties.
Its policy was supposed to be temporary, but the Treasury Department has now announced a permanent change.
His original proposals have now been given the green light, and vacationers can bring three cases of beer, two cases of still wine and one case of sparkling wine to the UK without paying UK duties.
UK Excise Tax will no longer be charged on alcohol and tobacco purchased on leaving the UK.
Excise tax is a tax on manufactured goods that is levied at the time of manufacture, not for sale. Therefore, products without customs tax are cheaper to buy.
The changes are possible because Great Britain, if it leaves without an agreement, is no longer subject to the EU internal market rules that have been in force since 1999.
Excise tax is a tax on manufactured goods that is levied at the time of manufacture, not for sale. Therefore, products without customs tax are cheaper to buy (file image).
The VAT and excise tax advice for passengers after the transition was initiated in the spring 2020 budget and completed in May (file image).
This means that for the first time in years, those returning home will be able to bring back a limited amount of cigarettes and alcohol without paying customs.
People also have the alternative option of buying limited amounts of duty-free alcohol and cigarettes from duty-free shops in Europe instead.
The limit values are 42 liters of beer, 18 liters of still wine, four liters of spirits or nine liters of sparkling wine, liqueur wine or alcoholic beverages with an ABV of less than 22 percent
For tobacco, the limit values are 200 cigarettes or 100 cigarillos or 50 cigars or 250 g tobacco or 200 tobacco rods for heating or a proportional combination of the above.
The value added tax and excise tax advice for passengers after the transition was initiated in the spring 2020 budget and completed in May.
Last September, then Chancellor Sajid Javid (pictured) informed travelers to the EU that they could buy cigarettes and alcohol without paying UK excise duties
Last September, Mr Javid said: “As we prepare to leave the EU, I am delighted to be able to assist British travelers.
"We want people to enjoy their hard-earned vacations, and this decision will help make vacationer's money go a little further."
Duty free in Europe ended seven years after the EU single market came into force in 1992, but is still allowed for travelers in non-EU countries.
Opting for duty-free shopping in UK ports, airports, international train stations, ships, trains and airplanes means that UK excise duty will no longer apply to alcohol and cigarettes bought when leaving the UK.
People returning from the EU can still bring unlimited amounts with them for their own use, provided they pay customs on the continent (file picture).
Other changes include: the end of tax-free sales of goods such as electronics and clothing at airports for passengers traveling to non-EU countries; and the end of VAT refunds for overseas visitors to UK stores.
The latest changes apply to England, Wales and Scotland, but it is unclear whether they will also apply to Ireland and Northern Ireland.
The decision to end tax-free sales was made because of concerns that the tax break was not always being passed on to consumers at the airport.
A Treasury Department spokesman said: "In some cases, these tax-free goods are being brought back into the country by UK residents, putting retailers at a disadvantage in the retail sector."
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