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Another hit for Cheap CD's/DVD's/Games?

  • 28-02-2006 4:24pm
    #1
    flogen
    Moderators, Society & Culture Moderators Posts: 10,247 Mod ✭✭✭✭


    Yep, the bastards have done it again;

    http://news.bbc.co.uk/1/hi/world/europe/jersey/4759422.stm
    Firms that distribute cut-price CDs and DVDs for major chain stores from Jersey to avoid VAT are to have their licences stopped in a year's time.

    Several chain stores including Tesco and Asda have moved internet mail-order operations to the island to avoid VAT.

    Under EU law, retailers that operate outside the EU can sell products valued at less than £18 to customers in member states without charging VAT.

    Play.com are based in Jersey too, but for some reason they're not going to be affected, apparently... maybe they're just targetting groups who take advantage of the islands situation, like Tesco and Asda, where as Play.com operate 100% from there.


Comments

  • #2
    Karoma
    Registered Users, Registered Users 2 Posts: 19,396 ✭✭✭✭Karoma


    flogen wrote:
    Play.com are based in Jersey too, but for some reason they're not going to be affected, apparently... maybe they're just targetting groups who take advantage of the islands situation, like Tesco and Asda, where as Play.com operate 100% from there.

    A lot of companies use it as a point of distribution, to avoid taxes and keep costs down and contribute little to the economy. Whereas, other companies buy & store stock in Jersey. Sounds fair enough to me.
    The only issue I'd take with the clampdown is that the same companies are unlikely to move their business back the mainland England. (Although.... cue IDA and tax allowance offers... )


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