Cross Border Exemptions [EU]
Tax-free allowances: permanent imports of personal property
This Directive aims to eliminate the tax obstacles to the importation by private individuals of personal property into one Member State from another Member State through the introduction of tax exemptions.
Council Directive 83/183/EEC of 28 March 1983 on tax exemptions applicable to permanent imports from a Member State of the personal property of individuals [see amending acts].
Summary
Within the limits and subject to the conditions laid down in the Directives, Member States exempt personal property of a non-commercial or non-speculative nature imported permanently from another Member State by private individuals from the turnover tax, excise duty and other consumption taxes which normally apply to such property.
Personal property means:
- property for the personal use of the persons concerned or the needs of their household;
- instruments necessary to the person concerned for the exercise of his trade or profession.
Conditions governing the granting of the exemption.
Particular conditions governing the application of the exemption to certain goods:
- tobacco products, alcoholic beverages, perfume, coffee and tea;
- saddle-horses, motor-driven road vehicles (including trailers), caravans, mobile homes, pleasure boats and private aircraft.
Save by way of exception, motor-driven road vehicles (including trailers), caravans, mobile homes, pleasure boats and private aircraft may not be disposed of, hired out or lent during a period of 12 months following their importation free of duty.
Specific provisions on the importation of personal property:
- in connection with a transfer of normal residence;
- in connection with the furnishing or relinquishment of a secondary residence;
- on marriage;
- acquired by inheritance.
Member States may retain or introduce more liberal conditions for granting tax exemptions than those laid down in the Directives, but only for certain goods.
References
| Act | Entry into force – Date of expiry | Deadline for transposition in the Member States | Official Journal |
| Directive 83/183/EEC | 31.3.1983 | 1.1.1984 | OJ L 105 of 23.4.1983 |
| Amending act(s) | Entry into force | Deadline for transposition in the Member States | Official Journal |
| Directive 89/604/EEC | 28.11.1989 | 1.7.1990 | OJ L 348 of 29.11.1989 |
Tax-free allowances: temporary importation of certain means of transport
This Directive aims to eliminate the tax obstacles to the temporary importation of certain means of transport within the Community by harmonizing national tax arrangements.
Council Directive 83/182/EEC of 28 March 1983 on tax exemptions within the Community for certain means of transport temporarily imported into one Member State from another [See amending acts].
Summary
The following are exempted from turnover tax, excise duties, any other consumption tax and the taxes listed in the annex to the Directive when temporarily imported from a Member State:
- various means of transport acquired or imported in accordance with the general conditions of taxation in force on the domestic market of a Member State: motor-driven road vehicles (including their trailers), caravans, pleasure boats, private aircraft, bicycles, tricycles and saddle-horses;
- normal spare parts, accessories and equipment imported with such means of transport.
Commercial vehicles (goods vehicles, vehicles intended to transport more than nine persons) are excluded from the exemption.
The Directive lays down the conditions governing the granting and duration of exemption for the temporary importation of the following categories:
- private vehicles, caravans, pleasure boats, private aircraft, bicycles and tricycles;
- private vehicles for business use;
- saddle-horses on horse-riding excursions.
The means of transport referred to in point 3 may not be disposed of, hired out or lent in the Member State of temporary importation.
In exceptional cases, temporary importation of a private vehicle for business use may be made conditional upon payment of a security.
Provisions relating to specific cases of temporary importation of private vehicles: these concern individuals working or studying in a Member State other than that of their normal residence.
Member States are permitted to maintain or introduce more liberal exemption arrangements than those provided for in the Directive.
References
| Act | Entry into force – Date of expiry | Deadline for transposition in the Member States | Official Journal |
| Directive 83/182/EEC | 31.3.1983 | 1.1.1984 | OJ L 105 of 23.4.1983 |
| Amending act(s) | Entry into force | Deadline for transposition in the Member States | Official Journal |
| Directive 2006/98/EC | 1.1.2007 | 1.1.2007 | OJ L 363 of 20.12.2006 |
Tax-free allowances: small consignments of goods
of a non-commercial character from Non-EU Member Countries
The aim of the Directive is to reduce tax barriers to the sending of small consignments of goods by private persons in Non-EU Member Countries to private persons in Member States of the European Union (EU) by establishing Community tax-free allowances.
Council Directive 2006/79/EC of 5 October 2006 on the exemption from taxes of imports of small consignments of goods of a non-commercial character from third countries.
This Directive is a codified version of:
Council Directive 78/1035/EEC of 19 December 1978 on the exemption from taxes of imports of small consignments of goods of a non-commercial character from Non-EU Member Countries [Official Journal L 366 of 28.12.1978] [Amended by Directives 81/933/EEC and 85/576/EEC].
Summary
Imported goods eligible for exemption from turnover tax and excise duty are those:
- of a non-commercial character sent in small consignments from Non-EU Member Countries;
- sent by private persons to other private persons in a Member State of the European Union (EU).
To be considered of a non-commercial character, the consignment must:
- have a total value of EUR 45 or less;
- be of an occasional nature;
- contain only goods intended for the personal or family use of the consignees;
- be sent by the sender to the consignee without payment of any kind.
The following goods, which are subject to quantitative import restrictions:
- tobacco products (50 cigarettes, 25 cigarillos, 10 cigars or 50 grams of smoking tobacco);
- alcohol and alcoholic beverages ;
- perfumes (50 grams) or toilet waters (0.25 litre or eight ounces);
- coffee (500 grams) or 200 grams of coffee extracts or essences);
- tea (100 grams) or 40 grams of tea extracts or essences,
are exempt from turnover tax and excise duty.
If the adjustment of the amount of the Community exemption results in a change of less than 5% when converted into national currency, the Member State concerned may maintain the existing amount as expressed in national currency.
| Key terms used in the act |
| · Alcohol and alcoholic beverages:
– distilled beverages and spirits of an alcoholic strength exceeding 22% vol.; undenatured ethyl alcohol of 80% vol. and over: one standard bottle (up to 1 litre); |
References
| Act | Entry into force | Deadline for transposition in the Member States | Official Journal |
| Directive 2006/79/EC | 6.11.2006 | 1.1.1979 | OJ L 286 of 17.10.2006 |
Exemptions from value added tax (VAT) and excise duty for
non-commercial imports of goods by persons travelling between the Member States of the European Union (EU) and third countries.
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.
Summary
This Directive establishes the maximum amount of money and the maximum quantities of alcohol and/or tobacco that persons travelling from non-member countries may import into the European Union (EU) without paying customs duty, VAT or excise duty. The goods in question must not be being imported for commercial purposes.
Scope
The system applies to goods imported in the personal luggage of persons travelling from countries or territories where the harmonised rules on VAT and excise duty do not apply.
The exemptions are applied on the basis of monetary thresholds or quantitative limits for goods that travellers from third countries are allowed to import tax-free into the EU.
Monetary thresholds
The Commission is proposing that the Member States exempt imports of goods with a value of not more than EUR 300 per person (EUR 430 for people travelling by air or sea) from VAT and excise duty.
Member States may limit the monetary threshold for travellers under 15 years of age, but a minimum EUR 150 applies regardless of the type of transport used.
Member States may choose not to levy VAT or excise duty on imports of goods by a traveller when the amount of the tax to be levied is EUR 10 or below. For the purposes of applying the monetary thresholds, the value of an individual item may not be split up. In addition, Member States may lower the monetary thresholds and the quantitative limits for travellers whose place of residence is in a border area, frontier workers and the crews of means of transport used in international travel.
Quantitative limits for tobacco
Member States are to exempt imports of tobacco products subject to the following maximum or minimum quantitative limits:
- 200 cigarettes or 40 cigarettes;
- 100 cigarillos or 20 cigarillos;
- 50 cigars or 10 cigars;
- 250 g smoking tobacco or 50 g smoking tobacco.
Member States may chose to distinguish between air travellers and other travellers by not applying the lower quantitative limits.
Quantitative limits for alcohol
Member States are to exempt imports of types of alcohol and alcoholic beverage, subject to the following quantitative limits:
- a total of 1 litre of alcohol and alcoholic beverages of an alcoholic strength exceeding 22% vol. or undenatured ethyl alcohol of 80% vol. and over;
- a total of 2 litres of alcohol and alcoholic beverages of an alcoholic strength not exceeding 22% vol.
Exemptions for tobacco and alcohol do not apply to travellers under 17 years of age.
In 2012, and every four years thereafter, the European Commission is to send the Council a report on the implementation of the Directive.
Background
As from 1 December 2008, this Directive repeals Directive 69/169/EEC.
References
| Act | Entry into force | Deadline for transposition in the Member States | Official Journal |
| Directive 2007/74/EC | 29.12.2007 Applicable as of 1.12.2008 |
1.12.2008 | OJ L 346 of 29.12.2007 |