Cut-price loophole closed on UK CDs
Published March 1st, 2006
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.
But Jersey’s government says negative publicity hits the island’s reputation.
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