The European Court of Justice has blocked online shoppers from buying cut-price cigarettes and alcohol anywhere in Europe.
The case had been brought by a Dutchman who challenged duties charged in his home country on wine that he had transported from France.
The decision means shoppers buying cheaper goods abroad will still have to accompany the goods back themselves.
In a landmark decision, the court upheld a 1992 EU ruling that duty is charged only in the member state where goods are bought for personal use but only if transported by the purchaser.
The ruling will come as a relief to finance ministries in about nine EU states, which had been awaiting the decision to see what impact it could have on revenues.
The decision goes against the opinion of an adviser to the court, who had suggested individuals be allowed to buy alcohol in another country, have it delivered to their home and pay the duty only of the country where the alcohol was bought.
The National Off-Licence Association has welcomed the decision. NOffLA is calling on the Government to reduce the high rates of tax Irish consumers pay on alcohol. It would like to see duty rates harmonised across the European Union.
