(On our website you will see that all of the prices for our wines are ‘In Bond’. When you choose to have wines delivered in bond it is stored in a bonded warehouse. This option is only really benefical ideal if you would like to purchase wine to mature and drink at a later day or sell on.)
What does ‘wine In Bond’ mean?
Buying wine In Bond means there is no payable Duty and VAT until it is taken out of the bonded warehouse in which it has been stored, such as the one we use at Decorum Vintners. When you withdraw the wine, you will have to pay excise duty and VAT. Unless you decide to sell your wines on In Bond.
What are the advantages of buying wine In Bond?
Excise Duty and VAT: There are numerous advantages to buying your wine In Bond. First and foremost, the payment of excise duty and VAT is postponed until you decide to withdraw the wine from the bonded warehouse. And if you decide to sell your wine on In Bond, then you won’t have to pay Duty or VAT at all.
There are instances when a wine’s original market value rises over time. If you choose to have it delivered at a later date you will pay the VAT on the wine’s original sale price rather than its current market value.
Preservation and Provenance: Regardless of whether you are purchasing wines for your own use, or for investment purposes, buying wines In Bond is beneficial for ensuring that the wines are verifiably tracked and kept in optimal conditions so they can age adequately. If you plan to sell your wines, provenance is a crucial consideration for prospective buyers. The wine that is stored In Bond will be much easier to trace and due to the minimal amount of bonded warehouses, there is a much higher likelihood that the wine has been stored correctly. All in all, wines stored In Bond are far more attractive to prospective buyers and brokers.
Why sell wine In Bond?
As we have already mentioned above, when you sell wine In Bond you will never have to pay the duty or VAT charges as they are only payable once the wines are taken out of bond. Additionally, merchants or brokers will usually quote the same price regardless of whether the wine is Duty and VAT paid, saving you the equivalent VAT and duty charges.