Excise goods distance-sold to a non-registered entity
Where the supplier delivers excise goods (tobacco products, wines and spirits, beer, etc.) to an individual, a non-taxable legal person, or any other non-registered entity, the supply is chargeable to VAT and excise duty in the country of destination, irrespective of the supplier’s level of sales, i.e. there is a registration threshold of zero. Where goods are delivered to customers in another member state for private purposes, the supplier must register in that member state and account for VAT as a distance seller (Notice 725, para. 15.4 (2016 edn)).