I just transferred mine.
they take duty and VAT
big dent in the monthly budget
I just transferred mine.
I was thinking that because the biggest element is normally the VAT, it would normally make better sense to only move them into duty paid reserves when they are ready for drinking.
Basis of this being that you pay VAT on the price paid so in real terms the VAT liability is reduced with inflation.
Is there some flaw to this logic???
no flaw - mine was risk based…if VAT were to change - yours assumes no change
Makes sense , most logical.
I don’t have IB reserves yet, but I would only pay duty + vat upon withdrawal for drinking or if the increase of the combined is quite high - classical cost of funding/liquidity considerations
they didn’t offer me the option to pay Duty only & VAT on withdrawal or maybe I didn’t ask.
It’s not an option online either.
That is because they are both payable at the exact same time.
Are you sure your sums are correct @tom , I don’t see how it can cost you £27 more at a later date. Excise duty is £288.65 per 100L for wine less than 15 abv. That equates to £2.17 per bottle or £12.99 per case of 6.
27 * £12.99 [duty per 6] = £350.73 + 3% = £361.25 [£10.52 extra]
VAT on the £10.52 is £2.10, giving an extra cost of £12.62 or 47p per case.
In my opinion unless you believe that the Government (any Government that is) is likely to reduce taxes at some point in the future then it’s always better to pay upfront. Can anyone recall tax on wine being reduced ? On the other hand if you are borrowing money to buy EP then the calculation maybe somewhat different.
It’s not, I added up duty+vat on all my cases as listed in reserves, then added 3%, so I’m including vat in the rise as well. Either way it’s not significant enough for me to rush to pay it all now.
I think the bigger point is this.
We are a Coop.
So: should we have been sent a “reminder”?
It’s a valid assumption and reason to pay upfront @Barrelsample but just to point out the UK did reduce VAT in 2008 in the wake of the market crash for a short period of time, so one could have saved a bit of fish during that period. Rare though that instance may be!
That sounds like a dangerous game akin to buying equities on margin…particularly if the repayment of the loan is to come from selling the wine at a profit which may or may not happen…who would finance that and at what rate?
Lehman bothers probably.
I know several members of this board also take part in the UK Wine Forum, but for those that don’t there was a recent thread on the advantages and disadvantages of storing wine in bond that encapsulate the salient points that will be of interest:
One of those comments made me realise another reason not to pay just yet - in case of moving abroad and moving the wines with me. Would rather not pay duty twice.
Hi @tom that shouldn’t be an issue if moving within the EU (currently… ) but further afield then that would be a consideration
EU countries have discretion to set alcohol duty as they like and VAT within a fairly wide band… so it is an issue within the EU, too. A fair few countries have lower rates so paying here and then moving there would not make sense. Agree that if you already paid then moving within the EU is not an issue now…
Forme it’s the possibility of moving to the states, so definitely worth waiting
I was thinking about this bit…
I was under the impression if you’re “duty paid” in one EU country you will have paid the VAT as well and are free to move the wine within the EU as long as it’s for personal consumption. Am going through this process myself ahead of a imminent move to Sweden, and that is the situation there.