Duty, VAT and buying in bond

Buying in bond

Duty, VAT and buying in bond

Every price on this site is shown twice. This page explains the difference between the two numbers, and exactly what the second one is made of.

In bond

The wine sits in a customs approved warehouse with duty and VAT not yet paid. You own it, it is insured and it is in your name, but it has not entered the country for tax purposes. It can be sold on in bond without either ever being paid.

Duty paid

The wine has been released for delivery. Duty and VAT have been paid and you can take it home and drink it. This is the number that matters if the wine is going in your rack rather than staying in the warehouse.

Duty, per bottle, by strength

Wine is taxed on its alcoholic strength rather than at a flat rate, so there is no single duty figure for a bottle of wine. The rates below took effect on 1 February 2026. Most still wine falls between 12 and 15 per cent.

StrengthDuty per 75clPer 12 case
11.5%£2.64£31.68
12%£2.75£33.00
12.5%£2.87£34.44
13%£2.99£35.88
13.5%£3.10£37.20
14%£3.22£38.64
14.5%£3.33£39.96
15%£3.45£41.40

VAT at 20 per cent is then charged on the wine and the duty together. Rates shown per 75cl bottle, effective 1 February 2026.

A worked example

A twelve bottle case at 13.5 per cent, bought in bond at £600.

In bond price£600.00
Duty, 12 bottles at £3.10£37.20
VAT at 20% on £637.20£127.44
Delivery (orders of £350 or more)No charge
Duty paid, before delivery£764.64

When it falls due

Neither duty nor VAT is payable while the wine stays in bond. Both fall due at the moment you ask for it to be delivered, or if you take it out of the warehouse for any other reason. If you sell it in bond to another buyer, neither is ever paid by you. That is the single biggest practical reason collectors buy in bond and leave it there.

Every price on the list can be shown either way.

If you are not sure which applies to you, ask me. It takes one email to work out.

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Questions

What is the difference between in bond and duty paid?

Wine in bond sits in a customs-approved warehouse with duty and VAT not yet paid. You own it, it is insured and it is in your name, but it has not entered the country for tax purposes, and it can be sold on in bond without either ever being paid. Duty paid means the wine has been released for delivery and both have been paid.

When do duty and VAT become payable?

Neither is payable while the wine stays in bond. Both fall due at the moment you ask for the wine to be delivered, or if it leaves the warehouse for any other reason. If you sell it in bond to another buyer, neither is ever paid by you.

How much is duty on a bottle of wine?

Wine is taxed on its alcoholic strength rather than at a flat rate, so there is no single figure. At 13.5% it is £3.10 per 75cl bottle, or £37.20 on a case of twelve. Most still wine falls between 12% and 15%, which is £2.75 to £3.45 a bottle. These rates took effect on 1 February 2026.

What does a case actually cost once duty and VAT are added?

A twelve-bottle case at 13.5% bought in bond at £600 comes to £764.64 duty paid before delivery: £600 for the wine, £37.20 duty, and £127.44 VAT at 20% charged on the wine and the duty together.