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Treasury to close loophole that allows VAT-free imports from Channel Islands

pierre_pierre
Grafter
Posts: 19,757
Registered: 30-07-2007

Treasury to close loophole that allows VAT-free imports from Channel Islands

http://www.bbc.co.uk/news/business-15646470
The government is to change the tax rules that have allowed retailers to avoid paying VAT by sending goods from the Channel Islands.
Low Value Consignment Relief (LVCR) will not apply to goods sent from the Channel Islands to the UK from 1 April.
The loophole has been used increasingly in recent years by companies selling CDs and DVDs online, such as Play.com, Tesco and Amazon.
5 REPLIES
oldgeezer
Grafter
Posts: 206
Registered: 02-02-2010

Re: Treasury to close loophole that allows VAT-free imports from Channel Islands

That will put the final nail in the coffin of HMV I'll bet.
I used to order compatible ink cartridges from a firm that eventually transfered it's warehouse operation to the Channel Isles. The Royal Mail delivery time went from a couple of days to 3/4 weeks.
When I queried this with the local sorting office I was told it was commonplace and due to HM Customs playing silly b*****s in order to show their displeasure at losing out on the VAT.
At least the delivery times might come down now even if the cost does go up by 20%.  Cry
Oldgeezer
Community Veteran
Posts: 2,556
Thanks: 171
Fixes: 2
Registered: 27-05-2011

Re: Treasury to close loophole that allows VAT-free imports from Channel Islands

I've been receiving printer cartridges and memory shipped from the Channel islands within the week from ordering  Smiley
I did note as well when the value was above a certain level the consignment was split. like two identical memory PCB in separate envelopes which were delivered on the  same day. Also a pack of HP cartridges (sold under a  HP part number) split and shipped in two separate packages. Cheesy
It was always goiung to be stopped with such flagrant playing the system going on  Roll eyes
To do is to be - Neitzsche
To be is to do - Kant
do be do be do - Sinatra
pierre_pierre
Grafter
Posts: 19,757
Registered: 30-07-2007

Re: Treasury to close loophole that allows VAT-free imports from Channel Islands

I ordered some memory bits from Amazon, they all came from Jersey in separate packets
Community Veteran
Posts: 5,346
Thanks: 609
Registered: 23-09-2010

Re: Treasury to close loophole that allows VAT-free imports from Channel Islands

I noticed that a few of the items I bought from Chinese ebay sellers actually came from the channel islands.
I suppose this is more of the same thing?
Moderator
Moderator
Posts: 17,254
Thanks: 905
Fixes: 105
Registered: 11-01-2008

Re: Treasury to close loophole that allows VAT-free imports from Channel Islands

I just don't get it, 140 million quid is what they expect to get. Assuming that everyone will pay the more expensive rate and not cut back.
Probably cost more in benefits from job losses of delivery services etc as well.
Madness.
Will Moderate For Thanks