A ruling by the European courts has put an end to speculation that UK retailers may lose out to online businesses on the continent.
The issue invited extensive media coverage after a Dutch man, who purchased duty-paid wine in France, and hired a transport company to deliver it to him, challenged the Netherlands’ tax authorities for slapping him with a tax bill when the alcohol got home.
There was much speculation that if the man’s challenge was successful, it would mean consumers could buy cheap alcohol and tobacco online from other EU countries and have the goods delivered back to the UK.
Many speculated that a successful challenge to the Netherlands’ tax authorities could spell trouble for UK retailers, who would lose money if consumers shopped for their goods abroad.
The European Court of Justice ruled against the man’s claim, stating that he would have had to have transported the goods home himself to be exempt from further taxation back home.
The British Retail Consortium, who predicted the ruling would fall in the tax authorities’ favour, said there was never any real worry among retailers.
“It would be wrong to say retailers were breathing a huge sigh of relief today, as it wasn’t really as big a concern as the media made out,” said Richard Dodd, spokesperson for the British Retail Consortium (BRC).
Dodd explained that as most people buy goods, such as alcohol, in relatively small quantities alongside their weekly shop, there would not have a been a huge impact on retailers even if the ruling had gone the other way.
© Crimson Business Ltd. 2006
