Remote direct wine sales to private in the EU has 70% margins, 30% on-shelf

Technology is evolving and, with it, taxation, at least as far as VAT is concerned, regarding the direct sale of wine to private consumers in European Union countries, which represents an important opportunity for wine-producing companies. This evolution requires accurate information to make use of new tools and avoid mistakes. These topics were at the center of a recent meeting organized by Assoenologi, in collaboration with Direct from Italy, held, in the last days, at the Masi Monteleone 21 winery in Valpolicella. The meeting discussed how technology has significantly shortened the distance between producers and consumers: a disintermediation which has opened new horizons for direct wine sales. Thanks to the internet, consumers, even in distant countries, are within reach, helping consolidate existing relationships and create new ones. In short, technology opens market opportunities even in countries where distribution is already strong, because it allows producers to reach geographic niches that are otherwise underserved. However, international direct-to-consumer (D2C) sales present various challenges, and relatively few companies engage in it; among those which do, not all are fully compliant with legal requirements.
Until a few years ago, there was no alternative for complying with Value Added Tax obligations: businesses had to register for VAT in each Member State and pay the tax locally according to the destination country rates. Since July 1st, 2021, however, the OSS (One Stop Shop) system - applicable exclusively to B2C (Business to Consumer) transactions - has simplified the declaration and payment of this EU-wide tax, which varies from country to country -  (20% in France, and 19% in Germany, for example), by allowing businesses to register through Italy Revenue Agency portal. Companies may join the OSS regime even if their total annual EU B2C sales are below 10,000 euros, in which case they may continue applying Italian VAT (22%) and paying it in Italy. Thus, at least from this perspective, direct wine sales to private consumers in the EU are no longer a “mission impossible”, burdened by bureaucracy and costs higher than the value of small shipments though excise duty obligations still remain.
“Today, there is much discussion about B2C sales because, unlike in the past  - underlined Luca Castagnetti, director of Studio Impresa -  technology now allows us to easily do what used to be impossible. Thinking back to old marketing methods that used “cut-out paper coupons” to mail to a company, one realizes how technology has disintermediated the relationship between producers and consumers. Transactions between professional operators, B2B, are governed by invoices which tell the whole story, while the situation with consumers is different, because receipts are not exhaustive. It is essential to build a B2C tax culture within Italian wineries, as mistakes are still common in shipments to foreign private customers who, for example, request shipping after visiting the winery. Companies need to identify tools and partners which ensure the correct collection and payment of VAT and excise duties at destination, because in most cases this doesn’t happen today. The OSS regime is extremely helpful for VAT, since it allows companies to avoid registering in every Member State where they sell to private consumers, and instead pay VAT in Italy through a single quarterly return, which is then distributed to the various countries”. Distance sales of goods within the EU for VAT purposes - regulated by Article 38-bis of Legislative Decree 331/93 - include shipments transported by the supplier from one Member State to another for delivery to a private EU consumer. Importantly, this definition also covers cases where the supplier is indirectly involved in the transport. Therefore, even when the supplier is not directly handling the transport, the goods are considered transported on their behalf. “Being able to structure operations to manage B2C taxation correctly inside the winery - concluded Castagnetti - now represents a competitive advantage: those who act quickly will gain market share”.
As noted earlier, VAT procedures have been simplified, but excise duties on wine remain more “demanding”. The payment of excise duties - indirect taxes based on quantity, not value - represents the main challenge for direct distance selling in the EU. “In cross-border B2C sales  - explained Andrea Zucchetta of the Veneto and Friuli Venezia Giulia Customs and Monopolies Agency, after clarifying that these transactions follow different rules from exports to non-EU countries such as Switzerland or the UK  - excise duties must be paid in the destination country. Goods must leave from a tax warehouse, or from an operator registered with customs authorities, and arrive at a registered operator in the destination state (tax warehouse, registered consignee, or certified consignee). This operator then pays excise duties and other taxes locally and delivers the goods to the final recipient. This is not easy, which is why producers must appoint a tax representative in the destination country, since they cannot pay the tax themselves as the sender. Administrative penalties for irregularities range from 500 to 3,000 euros, but retroactive audits, excise recovery actions, and even criminal proceedings may be initiated in other EU countries. A practical solution adopted by many producers, especially smaller ones, is to rely on specialized companies that act as “certified consignors” and offer “excise support” services, handling procedures and tax payments in the destination country”.
Wine circulates within the EU under a suspension regime or with excise duties paid, documented through specific electronic accompanying documents (e-AD or e-ADS) which certify payment of excise duties in the destination country. In Italy, excise duty on wine is zero (exemption or zero rate), but this benefit applies only to domestic consumption. When exporting to other countries, wine must pay the local excise duties if above zero, as in Ireland, Finland, or Sweden, where excise duties are very high.
At a time when several major EU markets are declining, remote B2C sales offer a potential tool for maintaining market positions and/or achieving growth. Interest in this segment is evident from the growing number and quality of companies providing the technological and legal infrastructure needed for brands to sell directly to their final customers without traditional intermediaries. Not by chance, at Wine Paris 2026, in the “Wine Tech Perspectives” area (dedicated to observing and understanding emerging technologies, digital tools, and practices in the wine industry), 90% of the selected companies fell into this category. “Many companies ignore D2C regulations without understanding the risks, while others avoid D2C for fear of not being able to comply with the rules - observed Denis Andolfo, co-founder, with Francesco Prizzon, of Direct from Italy, a company specializing in simplifying this field for alcoholic beverage producers - yet international direct sales offer profit margins of 70%, compared to 25-30% for retail shelf sales, as well as additional benefits such as direct contact that strengthens consumer loyalty and data acquisition that supports low-cost marketing actions”.