Shopping abroad

Buying tax and duty-free goods

If you’re heading off on a shopping trip, it’s good to know what you can and can’t bring home with you. If something is tax free, it means you don’t have to pay the usual VAT on products brought into the country. Duty free means you don’t have to pay the UK duty which Customs and Revenue levies on imports.

Inside the EU

You can bring any amount of tax and duty-free alcohol, cigarettes and other purchases from EU countries, as long as everything is for your own use. This includes presents, but not anything you plan to sell.

The exception is that there are limits on the amount of tax and duty-free tobacco products you can bring in from some of the newer EU countries, such as Bulgaria, Estonia, Lithuania and Romania. Check the UK Customs site for more details.

If you are carrying a large amount of goods you may be questioned by customs if they suspect you are importing goods for commercial purposes. Customs say you are more likely to be quizzed if you have over 3200 cigarettes, 110 litres of beer, 90 litres of wine or 10 litres of spirits.

Outside the EU

You may have to pay tax on purchases

You may have to pay tax on purchases, but the government has recently doubled the amount you can bring back before you pay duty. The limit has gone up from £340 to £390 on purchases excluding alcohol, tobacco and perfume.

You are allowed to bring home: one litre of spirits or two litres of fortified wine; four litres of still wine and sixteen litres of beer; 200 cigarettes (or 50 cigars/100 cigarillos or 250g tobacco). Be aware that you cannot pool allowances. So if a group of four brings back a single item worth over the £340 allowance, they must pay the relevant charges.

Shopping Stateside

If you are off to America you may find some products are still cheaper than they are in the UK, despite the fall of the pound from a high of $2 in July 2008. The Apple iPod Classic, is cheaper in the States than here in the UK. You could also bag cosmetics at less than the UK price. In recent research, we’ve found that Opium Eau de Parfum on sale at the US department store Macy’s was 20% cheaper than the same product in the UK.

Buying holiday essentials

When it comes to buying sun creams, lotions, pills and batteries, don’t just assume you’ll get the best deals once you’re in the departure lounges at the airport. When Which? Holiday compared the prices of travel goods, the verdict was that you’re better off shopping for your holiday essentials in a supermarket.

So your weekly shop at your local big store saves you a few quid, can get you loyalty scheme points, and helps you avoid last-minute shopping hassles at the airport.

Checklist

Save Euros on a cheap WC from France

• Use a credit card when you shop abroad. You have the same protection using your credit card overseas as you do in the UK for purchases over £100 and under £30,000. It could save you a lot of hassle and money if something you buy proves to be faulty
• Know your tax and duty-free allowances if you want to buy alcohol and tobacco. Go to the HMRC website for more details.
• If you’re outside the EU and spend more than £390 on goods, you will need to pay to bring it back into the UK. Visit Customs for rates on various goods
• It’s illegal to bring ivory products, alligator and snake skins, turtle and tortoise shells, coral and orchids into the UK.

Tips

• Take a trip to France where you can buy home improvement goods, such as baths, sinks and WCs, more cheaply. But remember to check the fittings are compatible.
• Buying abroad can save you money – and you can get to use products before they go on sale in the UK. Golf clubs are sometimes available in the USA six months before they appear here – and they can be 50% cheaper