Jersey acts to curb loophole in VAT rules

Jersey is to close a tax loophole which has been used by some UK companies to supply low value goods from the island. Goods worth less than £18 can be imported into the European Union without payment of value added tax, and this has been used by businesses selling CDs and DVDs over the internet in Europe. The Forum of Private Business has campaigned against the loophole. Some retailers may now move their online business to another Channel Island, Guernsey.

Forum of Private Business: Press Release: Tax dodge: Jersey Gov't pledge does not go far enough, 28.2.06 http://www.fpb.co.uk/YZS9xZ4.html

Forum of Private Business: Homepage http://www.fpb.co.uk/

BBC News: CD sellers warned on island move, 1.3.06 http://news.bbc.co.uk/1/hi/world/europe/guernsey/4762460.stm

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