Statutory Instruments
VALUE ADDED TAX
Made
9th December 1992
Laid before the House of Commons
11th December 1992
Coming into force
1st January 1993
The Treasury, in exercise of the powers conferred on them by sections 16(4) and 48(6) of the Value Added Tax Act 1983(1) 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 1992 and shall come into force on 1st January 1993.
2. After Group 15 of Schedule 5 to the Value Added Tax Act 1983 there shall be inserted the following—
Item No
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 £36 in aggregate and which have no commercial character and 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 which have no commercial character and are to be carried in the traveller’s personal luggage.
| Goods | Quantity |
|---|---|
(a)Tobacco products:
| 200 100 50 250 grammes |
(b)Alcoholic beverages:
| a total of 1 litre a total of 2 litres a total of 2 litres a total of 2 litres |
(c)Perfumes
| 60 cc/ml 250 cc/ml |
2. The supply, of any goods within Item 1(a) or (b) above, to a traveller on board an aircraft or ship making a relevant journey by a person who supplies the traveller’s air or sea transport or any other person authorised by that person.
(1) For the purpose of determining the aggregate value of any goods referred to in Item 1(a) only the whole of the value of any item, or group of items which are normally sold as a set or collection, may be included in the aggregate value of £36.
(2) “tax free shop” means any shop which is situated within an airport, port or Channel Tunnel terminal and which is approved by the Commissioners for the supply of goods for the purposes of this Group and in this note “Channel Tunnel terminal” means the area situated in the vicinity of Cheriton, Folkestone referred to in section 1(7)(b) of the Channel Tunnel Act 1987(2).
(3) “relevant journey” means a journey by air or sea from the United Kingdom to a place in another member State where the traveller is to disembark and includes, for the purposes of Item 1, a journey by a Channel Tunnel shuttle train.
(4) “traveller” means any passenger travelling under a transport document for air or sea travel stating that the immediate destination is a place in another member State (including such a transport document stating that the final destination is a place outside the member States) or for shuttle train travel.
(5) Items 1 and 2 do not apply where the supply is to a traveller under 17 years of age of goods falling within Item 1(b), other than perfumes and toilet waters.
(6) In these Notes “shuttle train” has the meaning given in section 1(9) of the Channel Tunnel Act 1987.”.
Irvine Patnick
Tim Boswell
Two of the Lords Commissioners of Her Majesty’s Treasury
9th December 1992
(This note is not part of the Order)
This Order implements Article 1.22 of Council Directive 91/680/EEC (OJ No. L 376, 31.12.91, p.1) which amends the Sixth Council Directive 77/388/EEC (OJ No. L 145, 13.6.77, p.1) so as to insert Article 28k and provides for the zero-rating of certain supplies of goods made to travellers to a destination in another member State of the European Economic Community. For tobacco products, alcoholic beverages, perfumes and toilet waters, the zero-rating applies up to a quantity limit; for other goods, up to a value limit. The limits are specified in the Order. The Order applies to supplies made from a tax free shop at a port, airport or Channel Tunnel terminal or on board an aircraft or vessel going to a place in another member State.