An innovation from Amazon.co.uk? While browsing for a copy of The Day Today on DVD, Amazon offered it for £15.99. But, to one side of the page there is a little blue box titled Amazon Jersey offering the same thing for just £11.75, "UK delivery only - get this item for even less from Amazon Jersey". A tricky one here for Gordon Brown and the Treasury, when sites like Amazon start selling VAT-free CDs and DVDs via Jersey. After all, he collects a cool £70bn a year from Vat. He wouldn't want too much of that to go walkabout (Thanks to Richard Adams for this one). The company explains:
"Amazon.co.uk prices include UK VAT. Amazon Jersey prices are lower than Amazon.co.uk prices because: (a) the Isle of Jersey does not charge VAT on products purchased in Jersey;and (b) when products are imported into the UK, VAT is usually payable in the UK by the importer of record (the customer is considered the importer of record in respect of items purchased from Amazon Jersey). However, there are special tax and customs regulations that exempt deliveries of 'low value' goods (goods with a total value below £18) from import VAT". So that's alright then . . .
