Fine Wine Questions & Answers
What does IB (In Bond) mean?
IB stands for In Bond. Wines In Bond have not had UK Duty and VAT paid on them.
Most of our wines are available for purchase under bond, as fine wines often need to be laid down in order to allow them to mature. Many clients choose therefore to store them in our bonded warehouse and pay the tax as and when they wish to get the wines delivered.
Please note, if you wish to get wines delivered for drinking, the duty and VAT will need to be paid. The wine is then said to be duty paid.
Please note that Wines purchased In Bond can be exported to non-EU countries without the need for Duty and VAT to be paid.
What does DP (Duty Paid) mean?
DP stands for Duty Paid. In this instance Duty has been paid and VAT will be applicable on your purchase of this stock.
All taxes must be paid in order for us to be authorised to ship or deliver wine (unless the wine is bonded and being moved to another bonded warehouse or being shipped directly outside of the EU.)
How is Duty and VAT calculated?
The prevailing rate of UK Duty is added to the value of the goods, before the current rate of VAT is applied to the cost of goods plus Duty.
Do I need to pay Duty and VAT if I intend to export the wine?
If export is to a non-EU country and the wine's status is currently In Bond, you will not need to pay Duty and VAT. All EU exports and domestic deliveries require Duty and VAT to be paid in advance.