1994 No. 686
VALUE ADDED TAX

The Value Added Tax (Tax Free Shops) Order 1994

Made
Laid before the House of Commons
Coming into force
The Treasury, in exercise of the powers conferred on them by sections 16(4) and 48(6) of the Value Added Tax Act 19831 and of all other powers enabling them in that behalf, hereby make the following Order:

1.

This Order may be cited as the Value Added Tax (Tax Free Shops) Order 1994 and shall come into force on 1st April 1994.

2.

(1)

Group 15A2 (Tax Free Shops) of Schedule 5 to the Value Added Tax Act 1983 shall be amended as follows.

(2)

For item 1 there shall be substituted the following—

“1.

The supply, by a person in the course of carrying on business in a tax free shop, to a traveller making a relevant journey of goods which are of either of the following descriptions—

(a)

goods not included in the first column of the following table which do not exceed a value of £71 in aggregate and which are to be carried in the traveller’s personal luggage; or

(b)

goods included in the first column of the following table which do not exceed the quantities set out in the second column of that table and are to be carried in the traveller’s personal luggage.

Goods

Quantity

Alcoholic beverages—

(a)

with an alcoholic strength of more than 22% by volume

a total of 1 litre

  • or

  • with an alcoholic strength of not more than 22% by volume, fortified wines and sparkling wines (including made-wines)

a total of 2 litres

(b)

still wines (including made-wines)

a total of 2 litres

Perfume and Toilet Water

Perfume

60 ml

Toilet Water

250 ml

Tobacco Products

Cigarettes

200

or Cigarillos

100

or Cigars

50

or Smoking tobacco

250 grammes”

(3)

In note (1) for “£36” there shall be substituted “£71”.

Irvine Patnick
Andrew Mackay
Two of the Lords Commissioners of Her Majesty’s Treasury
(This note is not part of the Order)

This Order, which comes into force on 1st April 1994, amends Group 15A of Schedule 5 to the Value Added Tax Act 1983 (c. 55). Group 15A provides the limits of goods that may be supplied at the zero-rate in a tax free shop to a traveller making a journey to a destination in another member State of the European Community.

The effects of the amendments are as follows:

First, the limit of the value of goods, other than alcoholic beverages, perfume and toilet water and tobacco products, that can be supplied in a tax free shop at the zero-rate, has been increased from £36 (45 ECU) to £71 (90 ECU). This amendment gives effect to Article 2 of Directive 94/4/EC (OJ No. L60, 3.3.94, p.14) which amends Article 28k of Council Directive 77/388/EEC (OJ No. L145, 13.6.77, p1): Article 28k was inserted by Article 1.22 of Council Directive 91/680/EEC (OJ No. L376, 31.12.91, p1).

Secondly, the requirement that goods supplied at the zero-rate in a tax free shop should have no commercial character has been removed.

Thirdly, the limit on the supply at the zero-rate of either 2 litres of alcoholic beverages with an alcoholic strength of not more than 22% by volume or of 2 litres of fortified wines and sparkling wines, has been replaced by a combined limit of 2 litres of alcoholic beverages with an alcoholic strength of not more than 22% by volume, fortified wines and sparkling wines (including made-wines).

Finally, the limit of 2 litres of still wines (other than fortified wines) has been replaced by a limit of 2 litres of still wines (including made-wines).