Welcome to our new website. Please let us know what you think.

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.