Online retailers including Amazon and Play.com see Channel Islands VAT loophole closed
Online retailers such as Amazon, Play.com and HMV will be forced to stop selling VAT-free DVDs, CDs and other merchandise with a legal loophole set to be closed. The retailers have been buying the goods from the Channel Islands, which is exempt from VAT, and where all goods bought for under £15 and then imported into the UK, are exempt from also VAT. The VAT-free loophole will be closed after a legal challenge by the Channel Islands was dismissed yesterday, the Guardian reported. The Guardian newspaper, alongside several retailers including Fopp and Holland & Barret have campaigned to the Treasury for years as the companies were struggling to compete with VAT-free prices.
Source: The Guardian