SCHEDULES

SCHEDULE 8 Zero-rating

Part II The Groups

Group 14— Tax-free shops

1 Item No

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 F1£75 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 which 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

1 litre

or

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

2 litres

(b) still wines (including made-wines)

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

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.

Notes:

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 F2£75.

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 M1Channel Tunnel Act 1987.

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 by section 1(9) of the M2Channel Tunnel Act 1987.