In Bond / Duty Paid Pricing Explanation

Once you start becoming a serious wine lover and collector, getting comfortable with both understanding and buying wines 'In Bond' is crucial. 

So what does it means and why would you do it? We explore that concept here. 

 

Our prices are per case:

In order to offer the best prices possible, we class ourselves as a 'case merchant'.

Our prices, therefore, are per case with the case size featured in the item description.

Common but not resticted to case sizes are: 3x75cl, 6x75cl, 12x75cl, 3x150cl, 12x37.5cl.

The two prices on the product page:

You will be seeing two prices on our product pages and they are In Bond and Duty Paid inc VAT.

 

In Bond - this is the price of the wine without paying local duty and VAT taxes (e.g. if you were to export)

Duty Paid inc VAT - this is the total price you would pay for the wine once you arrange home delivery.

 

The initial purchase will be for the In Bond price and the duties and VAT being settled up later on. An explanation of our two-step order process can be located here.

What does ‘In Bond’ pricing mean?

Wines that are sold ‘in bond’ have not had the duty and VAT – also known as sales tax – paid on them.

This is a particularly common way to buy wine for investment and is also used for wine that is purchased en primeur.

'In Bond' wines have to stay in a special regulated customs warehouse.

 

What components make up the final price?

When buying wine, the end price is a result of three components:

1. Selling price - this is often referred to as the 'In Bond' or 'IB' price
2. Duty - due to it being alcohol*
3. Local VAT

*You also pay VAT on the duty

 

Can you avoid paying the duty and VAT?

Whilst the wine remains in the warehouse, the duty and VAT do not need to be paid.

Sadly, if you are looking to take the wine out of the warehouse for consumption, then it must be paid for.

 

What are the advantages of buying In Bond?

• The Duty and VAT is paid later, resulting in a more economical cash Flow E.g. you buy 10 cases of Bordeaux now, and pay the duty and VAT in 5 year's time when you would like to take them out of storage and drink them
• If you should sell the wine on to someone else, the duty and VAT were never paid
• Wines stored in Bond have better provenance and traceability. This is important in protecting against fake wines
• If reselling your wine, In Bond wine is more attractive to prospective buyers and brokers
• If you decide to have the wine delivered a few year's after purchase, you will pay the VAT amount on the initial purchase price, not the current market value. This is great is buying prestigious wines which increase in price over time
• Should the wine be exported after purchase, local duty and VAT was never paid

 

What is the duty and tax rate in the Netherlands?

In the Netherlands duty per case of 6x75cl is €3.98 for wines that are 15% ABV or less in alcohol. 

VAT is 21% in the Netherlands. 

 

E.g. if a case of Tignanello 1990 (6x75cl) cost €100 per 6 In Bond, the breakdown would be as such:

• €100 per case 'In Bond' price
• €3.98 duty per case
• 21% VAT

(€100 + €3.98) x 1.21 = €125.81 would be the final price