Council Directive 2007/74/EC of 20 December 2007 on the exemption from value added tax and excise duty of goods imported by persons travelling from third countries
Date: 2007-12-20
Institutions: Council of the European Union
Subjects: VAT, excise duty, exemption from customs duties, import tax, quantitative restriction, third country, traveller

L 346/6

EN

Official Journal of the European Union

29.12.2007

DIRECTIVES

COUNCIL DIRECTIVE 2007/74/EC

of 20 December 2007

on the exemption from value added tax and excise duty of goods imported by persons travelling
from third countries

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community, and in particular Article 93 thereof,

establishing the European

Having regard to the proposal from the Commission,

Having regard to the Opinion of the European Parliament,

Having regard to the Opinion of the European Economic and
Social Committee,

Whereas:

(1)

(2)

established a Community

Council Directive 69/169/EEC of 28 May 1969 on the
harmonisation of provisions laid down by law, regulation
or administrative action relating to exemption from
turnover tax and excise duty on imports in international
travel (1)
tax
exemptions. While it
remains necessary to maintain
that system in order to prevent double taxation, as well
as in cases where, in view of the conditions under which
goods are imported,
the
it should still apply only to non-
economy is absent,
luggage
commercial
of travellers from third countries.

imports of goods in the personal

the usual need to protect

system of

and to the new external borders of

However, given the number of amendments required, as
well as the need to adapt Directive 69/169/EEC to enlar-
gement
the
Community, and to restructure and simplify certain
provisions for the sake of clarity, the complete revision
and repeal and replacement of Directive 69/169/EEC is
justified.

(3)

The quantitative limits and monetary thresholds to which
the exemptions are subject should meet the current needs
of Member States.

(1) OJ L 133, 4.6.1969, p. 6. Directive as last amended by Directive

2005/93/EC (OJ L 346, 29.12.2005, p. 16).

(4)

(5)

(6)

(7)

(8)

(9)

The monetary threshold should take account of changes
in the real value of money since the last increase in 1994
and should also reflect the abolition of quantitative limits
on goods subject to excise duties in some Member States
which will now fall into the general threshold on VAT.

The ease of shopping abroad could cause problems to
Member States which share land-borders with third
countries with significantly lower prices. It is justifiable,
therefore, to set a lower monetary threshold for forms of
travel other than air and sea travel.

In the experience of the Commission, the quantities for
tobacco products and alcoholic beverages have,
in
general, been shown to be appropriate and should
therefore be maintained.

The quantitative limits for the exemption of excise goods
should reflect the current scheme of taxation of such
goods in the Member States. Accordingly,
it is appro-
priate to provide for a limit for beer whereas the limits
for perfume, coffee and tea should be discontinued.

It is appropriate to allow Member States to set lower
limits with regard to the monetary threshold for
children and to exclude under-aged persons from the
exemptions
alcoholic
products
beverages,
in order to ensure a high level of health
protection.

tobacco

and

for

Given the need to promote a high level of human health
protection for Community citizens,
it is appropriate to
allow Member States to apply reduced quantitative limits
for the exemption of tobacco products.

29.12.2007

EN

Official Journal of the European Union

L 346/7

In order to take account of the special situation of certain
people with regard to their location or working envir-
onment, it should also be possible for Member States to
apply narrower exemptions
frontier
in the case of
residing near Community frontiers
workers, persons
and the crew of the means of transport used in interna-
tional travel.

Article 3

For the purposes of this Directive, the following definitions shall
apply:

1.

‘third country’ means any country which is not a Member
State of the European Union;

(10)

(11)

It is to be recalled that Austria shares a land border with
Samnauntal, a Swiss enclave where a specific tax system
is applied which results in significantly lower taxation
than that applicable under the rules applying in the
rest of Switzerland and, indeed, in the Kanton of Grau-
bünden of which Samnauntal forms part. In view of that
special situation, which has led Austria to apply lower
quantitative limits for tobacco products with respect to
that enclave in accordance with Article 5(8) of Directive
69/169/EEC, it is appropriate to allow that Member State
to apply the lower limit provided for tobacco products
by this Directive only to Samnauntal.

2.

(12)

For Member States which have not introduced the euro, a
mechanism should be
amounts
expressed in national currencies to be converted into
euro and thus ensure equal treatment in the Member
States.

set up to enable

(13)

The amount on which Member States are free not to levy
taxes on the import of goods should be increased in
order to reflect current monetary values,

HAS ADOPTED THIS DIRECTIVE:

In view of the Fiscal Agreement between France and the
Principality of Monaco dated 18 May 1963 and the
Agreement of friendship and neighbourly relations between
Italy and the Republic of San Marino dated 31 March 1939,
Monaco shall not be regarded as a third country and San
Marino shall not be regarded as a third country in respect of
excise duty;

‘territory where the Community provisions on VAT or excise
duty, or both do not apply’ means any territory, other than
country, where Directives
a
2006/112/EC (1) or 92/12/EEC, or both do not apply;

territory

third

of

a

In view of the Agreement between the Governments of the
United Kingdom and the Isle of Man on Customs and Excise
and associated matters dated 15 October 1979, the Isle of
Man shall not be regarded as a territory where the
Community provisions on VAT or excise duty, or both do
not apply;

3.

‘air
travellers’ and ‘sea travellers’ means any passengers
travelling by air or sea other than private pleasure-flying or
private pleasure-sea-navigation;

CHAPTER I

4.

SUBJECT-MATTER AND DEFINITIONS

Article 1

This Directive lays down rules relating to the exemption from
value added tax (VAT) and excise duty of goods imported in the
personal luggage of persons travelling from a third country or
from a territory where the Community provisions on VAT or
excise duty, or both, as defined in Article 3, do not apply.

‘private pleasure-flying’ and ‘private pleasure-sea-navigation’
means the use of an aircraft or a sea-going vessel by its
owner or the natural or legal person who enjoys its use
either
for
purposes other than commercial and in particular other
than for the carriage of passengers or goods or for the
supply of services for consideration or for the purposes of
public authorities;

through any other means,

through hire or

Article 2

Where a journey involves transit through the territory of a third
country, or begins in a territory as referred to in Article 1, this
Directive shall apply if the traveller is unable to establish that
the goods transported in his luggage have been acquired subject
to the general conditions governing taxation on the domestic
market of a Member State and do not qualify for any refunding
of VAT or excise duty.

5.

‘frontier zone’ means a zone which, as the crow flies, does
not extend more than 15 kilometres from the frontier of a
Member State and which includes the local administrative
districts part of the territory of which lies within the zone;
Member States may grant exemptions therefrom;

6.

‘frontier-zone worker’ means any person whose normal
activities require that he should go to the other side of the
frontier on his work days.

Overflying without landing shall not be regarded as transit.

(1) OJ L 347, 11.12.2006, p. 1. Directive as amended by Directive

2006/138/EC (OJ L 384, 29.12. 2006, p. 92).

L 346/8

EN

Official Journal of the European Union

29.12.2007

CHAPTER II

EXEMPTIONS

SECTION 1

Common provisions

Article 4

Member States shall, on the basis of either monetary thresholds
or quantitative limits, exempt from VAT and excise duty goods
imported in the personal luggage of travellers, provided that the
imports are of a non-commercial character.

Article 5

For the purposes of the application of the exemptions, personal
luggage shall be regarded as the whole of the luggage which a
traveller is able to present to the customs authorities upon
arrival, as well as luggage which he presents later to the same
authorities, subject to proof that such luggage was registered as
accompanied luggage, at the time of his departure, with the
company which has been responsible for conveying him. Fuel
other than that referred to in Article 11 shall not be regarded as
personal luggage.

Article 6

For the purposes of the application of the exemptions, imports
shall be regarded as being of a non-commercial character if they
meet the following conditions:

transport. However, the monetary threshold may not be lower
than EUR 150.

For the purposes of applying the monetary thresholds, the

3.
value of an individual item may not be split up.

4.
The value of the personal luggage of a traveller, which is
imported temporarily or is re-imported following its temporary
export, and the value of medicinal products required to meet
the personal needs of a traveller shall not be taken into consid-
eration for the purposes of applying the exemptions referred to
in paragraphs 1 and 2.

SECTION 3

Quantitative limits

Article 8

1. Member States shall exempt from VAT and excise duty
imports of
tobacco product, subject
either to the following higher or lower quantitative limits:

the following types of

(a) 200 cigarettes or 40 cigarettes;

(b) 100 cigarillos or 20 cigarillos;

(c) 50 cigars or 10 cigars;

(a)

they take place occasionally;

(d) 250 g smoking tobacco or 50 g smoking tobacco.

(b) they consist exclusively of goods for the personal or family
use of the travellers, or of goods intended as presents.

Each amount specified in points (a) to (d) shall represent, for the
purposes of paragraph 4, 100 % of the total allowance for
tobacco products.

The nature or quantity of the goods must not be such as to
indicate that they are being imported for commercial reasons.

Cigarillos are cigars of a maximum weight of 3 grams each.

SECTION 2

Monetary thresholds

Article 7

1. Member States shall exempt from VAT and excise duty
imports of goods, other than those referred to in Section 3, the
total value of which does not exceed EUR 300 per person.

In the case of air and sea travellers, the monetary threshold
specified in the first subparagraph shall be EUR 430.

2. Member States may lower the monetary threshold for
their means of
travellers under 15 years old, whatever

2. Member States may choose to distinguish between air
travellers and other travellers by applying the lower quantitative
limits specified in paragraph 1 only to travellers other than air
travellers.

3.
By derogation from paragraphs 1 and 2, Austria may, as
long as the tax system in the Swiss enclave of Samnauntal
differs from that applicable in the rest of the Kanton of Grau-
bünden, limit the application of the lower quantitative limit to
tobacco products brought into the territory of that Member
State by travellers who enter its territory directly from the
Swiss enclave of Samnauntal.

4.
In the case of any one traveller, the exemption may be
applied to any combination of tobacco products, provided that
the aggregate of the percentages used up from the individual
allowances does not exceed 100 %.

29.12.2007

EN

Official Journal of the European Union

L 346/9

Article 9

(c)

1. Member States shall exempt from VAT and excise duty
alcohol and alcoholic beverages other than still wine and beer,
subject to the following quantitative limits:

the crew of a means of transport used to travel from a third
country or
the Community
provisions on VAT or excise duty, or both do not apply.

territory where

from a

(a) a total of 1 litre of alcohol and alcoholic beverages of an
alcoholic strength exceeding 22 % vol, or undenatured ethyl
alcohol of 80 % vol and over;

(b) a total of 2 litres of alcohol and alcoholic beverages of an

alcoholic strength not exceeding 22 % vol.

Each of the amounts specified in points (a) and (b) represent, for
the purposes of paragraph 2, 100 % of the total allowance for
alcohol and alcoholic beverages.

In the case of any one traveller, the exemption may be
2.
applied to any combination of
the types of alcohol and
alcoholic beverage referred to in paragraph 1, provided that
the aggregate of the percentages used up from the individual
allowances does not exceed 100 %.

2.
Paragraph 1 shall not apply where a traveller in one of the
categories listed therein produces evidence to show that he is
going beyond the frontier zone of the Member State or that he
is not returning from the frontier zone of the neighbouring
third country.

However, it shall apply where frontier-zone workers or the crew
of the means of transport used in international travel import
goods when travelling in the course of their work.

CHAPTER IV

GENERAL AND FINAL PROVISIONS

Article 14

Member States may choose not to levy VAT or excise duty on
the import of goods by a traveller when the amount of the tax
which should be levied is equal to, or less than, EUR 10.

3. Member States shall exempt from VAT and excise duty a
total of 4 litres of still wine and 16 litres of beer.

Article 15

Article 10

Exemptions under Articles 8 or 9 shall not apply in the case of
travellers under 17 years of age.

Article 11

Member States shall exempt from VAT and excise duty, in the
case of any one means of motor transport, the fuel contained in
the standard tank and a quantity of fuel not exceeding 10 litres
contained in a portable container.

Article 12

The value of goods referred to in Articles 8, 9 or 11 shall not
be taken into consideration for the purposes of applying the
exemption provided for in Article 7(1).

1.
The euro equivalent in national currency which shall apply
for the implementation of this Directive shall be fixed once a
year. The rates applicable shall be those obtaining on the first
working day of October. They shall be published in the Official
Journal of the European Union and shall apply from 1 January of
the following year.

2. Member States may round off the amounts in national
currency resulting from the conversion of
the amounts in
euro provided for in Article 7, provided such rounding-off
does not exceed EUR 5.

3. Member States may maintain the monetary thresholds in
force at the time of the annual adjustment provided for in
to the rounding-off provided for in
paragraph 1 if, prior
paragraph 2,
amounts
expressed in euro would result in a change of less than 5 %
in the exemption expressed in national currency or
in a
lowering of this exemption.

conversion of

corresponding

the

CHAPTER III

SPECIAL CASES

Article 13

Article 16

1. Member States may lower the monetary thresholds or the
quantitative limits, or both,
in the case of travellers in the
following categories:

Every four years and for the first time in 2012 the Commission
shall forward a report on the implementation of this Directive
to the Council, where appropriate accompanied by a proposal
for amendment.

(a) persons resident in a frontier zone;

Article 17

(b) frontier-zone workers;

In Article 5(9) of Directive 69/169/EEC the date of
31 December 2007 shall be replaced by 30 November 2008.

L 346/10

EN

Official Journal of the European Union

29.12.2007

Article 18

Article 20

Directive 69/169/EEC shall be repealed and replaced by this
Directive with effect from 1 December 2008.

This Directive shall enter into force on the day of its publication
in the Official Journal of the European Union.

References to the repealed Directive shall be construed as
references to this Directive and shall be read in accordance
with the correlation table in the Annex.

Article 19

1. Member States shall bring into force the laws, regulations
and administrative provisions necessary to comply with Articles
1 to 15 of this Directive with effect from 1 December 2008.
They shall forthwith communicate to the Commission the text
of those measures.

When Member States adopt those measures, they shall contain a
reference to this Directive or be accompanied by such reference
on the occasion of their official publication. Member States shall
determine how such reference is to be made.

2. Member States shall communicate to the Commission the
text of the main provisions of national law which they adopt in
the field covered by this Directive.

It shall apply with effect from 1 December 2008.

However, Article 17 shall apply with effect from 1 January
2008.

Article 21

This Directive is addressed to the Member States.

Done at Brussels, 20 December 2007.

For the Council
The President

F. NUNES CORREIA

29.12.2007

EN

Official Journal of the European Union

L 346/11

ANNEX

CORRELATION TABLE

Directive 69/169/EEC

This Directive

Article 1(1)

Article 1(2)

Article 1(3)

Article 2

Article 3, point one

Article 3, point two

Article 3, point three, first subparagraph

Article 7(1)

Article 7(2)

Article 7(3)

—

Article 7(4)

Article 6

Article 5

Article 3, point three, second subparagraph

Article 5 and 11

Article 4(1), introductory phrase

Article 8(1) introductory phrase, Article 9(1) introductory
phrase

Article 4(1), second column

Article 4(1)(a), first column

Article 4(1)(b), first column

Article 4(1)(c), (d) and (e), first column

Article 4(2) first subparagraph

Article 4(2) second subparagraph

Article 4(3)

Article 4(4)

Article 4(5)

Article 5(1)

Article 5(2)

Article 5(3)

Article 5(4)

Article 5(5)

—

Article 8(1)

Article 9(1)

—

Article 10

—

Article 12

Article 2

—

—

Article 13(1)

—

Article 13(2)

—

Article 5(6), introductory phrase, first indent

Article 3(5)

Article 5(6), introductory phrase, second indent

Article 3(6)

Article 5(7)

Article 5(8)

Article 5(9)

Article 7(1)

—

—

—

—

L 346/12

EN

Official Journal of the European Union

29.12.2007

Directive 69/169/EEC

This Directive

Article 7(2)

Article 7(3)

Article 7(4)

Article 7(5)

Article 7a(1)

Article 7a(2)

Article 7b

Article 7c

Article 7d

Article 8(1)

Article 15(1)

Article 15(2)

Article 15(3)

—

—

Article 14

—

—

—

Article 19(1), first subparagraph

Article 8(2), first subparagraph

Article 19(1), first subparagraph

Article 8(2), second subparagraph

Article 9

—

Article 21