Treasury to close loophole that allows VAT-free DVDs

I found this interesting from the BBC news site :

"The government said that LVCR will continue to apply to goods coming from other countries outside the EU"

So, only Jersey got hit by this ?
 
EdwardTeach said:
It wont because all the companies will leave jersey. No incentive for them to be based there without the loophole.
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I presume you think they'll set up somewhere outside the EU so they can continue to avoid paying UK taxes because they're oh so clever chaps? Makes it sounds like the government is trying to appear tough on tax avoidance, while in reality making sure their mates can still cream off millions. Shame because this is one thing where I actually agreed with the government.
 
gothic_hobbit said:
So, only Jersey got hit by this ?
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Yup. Well, the Bailiwicks of Jersey and Guernsey, which is a little unfair in itself.

It will be interesting to see the effect on mainland prices. My betting is that either nothing will change (as the offshore businesses simply set up elsewhere) or, unfortunately, prices in the UK could actually rise. Having offshore exVAT competition forces onshore suppliers to keep their prices keen. Take away that price pressure and no prizes for guessing what onshore retailers can do...
 
scorza said:
I presume you think they'll set up somewhere outside the EU so they can continue to avoid paying UK taxes because they're oh so clever chaps? Makes it sounds like the government is trying to appear tough on tax avoidance, while in reality making sure their mates can still cream off millions. Shame because this is one thing where I actually agreed with the government.
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Morally, the government has it right. It's just the method that is way off. Singling out one jurisdiction is pointless. So, yes, the cynical amongst might just get the impression that the government are wishing to be seen to act rather than actually acting.
 
Stretch said:
That's because they ship from Jersey and Jersey post is slow.
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It doesnt just seem to be the shipping time but the actual despatch time from order to the item being posted by Amazon.
I've found even the UK based sales are increasing the despatch times. It used to be you could order and within an hour or 2 you'd have an email saying it had been posted. Now it can be up to 2 days before they seem to even send it out of the warehouse
 
DanielMMS said:
Morally, the government has it right. It's just the method that is way off. Singling out one jurisdiction is pointless. So, yes, the cynical amongst might just get the impression that the government are wishing to be seen to act rather than actually acting.
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Why is the method wrong?
The channel islands at the momemnt basically have special dispensation, within several companies have made use of. So why are they seen too ct rather than acting?
 
gothic_hobbit said:
The government really are pathetic.

Do they really think that this action will bring the likes of Woolworths and Zavvi back to the high street ?
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I bet you're one of the weenies who whines about rich people using complex structuring arrangements to avoid tax on their incomes.
 
Glaucus said:
Why is the method wrong?
The channel islands at the momemnt basically have special dispensation, within several companies have made use of. So why are they seen too ct rather than acting?
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Because just cutting off one jurisdiction but leaving LVCR in place for every other EU and non-EU area will just shift the problem elsewhere. Gibralter. Switzerland. Andorra. Wherever. All these companies need is space to set up a warehouse and access to a postal service. If the government were serious - rather than just paying lip service to the likes of RAVAS - they would abolish LVCR completely.
 
why not cut loopholes for rich bankers to avoid paying tax on their massive incomes, oh no wait did they just donate to the party, better let vodaphone off the interest they owe HMRC
 
Glaucus said:
How and why? It's just bringing it in line with the rest of the uk, so it's nothing they aren't already doing.
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The Channel Islands are not part of the UK. Up until now, HMRC have basically ignored all DVD sized packages coming in from the Channel Islands. Abolishing LVCR will require HMRC to examine each and every one to ensure that the relevant duty etc is paid. That will be manual and hugely time consuming. Then there will be the need for all offshore suppliers to be registered with HMRC, send in returns etc.
 
DanielMMS said:
Because just cutting off one jurisdiction but leaving LVCR in place for every other EU and non-EU area will just shift the problem elsewhere. Gibralter. Switzerland. Andorra. Wherever. All these companies need is space to set up a warehouse and access to a postal service. If the government were serious - rather than just paying lip service to the likes of RAVAS - they would abolish LVCR completely.
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But will they, companies don't seem to want to go far, probably due to shipping costs and shipping time. So I don't think we will see these companies move even further abroad.
 
Play etc will just move elsewhere within the EU somewhere central probably and we'll have no VAT to show for it, at least we'll have more unemployed though...
 
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