Tuesday, November 18, 2008

Standby for Amazon Jersey chaos

It has been reported* that our blessed government is to raise the "we don't care" threshold on VAT for imported goods from the EU from £18 to £104.

That is going to mean that much of the on line retailing is moving to Jersey shortly as you gain 17.5% saving which you can save and use to win business or raise profits.

Just what Jersey needs at this time of banking uncertainty.

Bad news for those who employ people in the UK or EU though.

Just strikes me as very odd, I wonder what the impact will be ( very large I would expect ).

Update: Its been pointed out in the comments that I should really have mentioned Customs duty not VAT

* H/T to James Shorewood at The Register


Anonymous said...

Does anybody know how this will effect downloaded software imports. I get quite cross that many American companies charge me VAT on software I download even though they would not charge fellow Americans sales tax if they had an out of State address.

I've also been charged VAT at German rates (about 19%) for software from Germany even though it has been below the £18 threshold.

One wonders if the VAT one pays to the Americans ever gets over to Europe and if so how is it monitored/audited?.

I guess the sensible thing would be for all software merchants to register in and 'ship' from Jersey. But maybe the concession doesn't apply to downloaded rather than post office delivered merchandise.

Anybody know the ins and outs of this?

Anonymous said...

I've just had a thought. This is going to send the 'save the planet' loonies beserk.

Presumably it will mean that an MP3 player, say, that I buy online from Jersey will have to be first transported to Jersey and then sent back again.

Think of the carbon footprint!

Bliss, the opportunity to annoy
the greens and save tax in one fell swoop.

I'm off for a pint and a fag to celebrate.

Brian said...

Gordon and Alastair take two bites out of your imported goods: Customs duty (threshold raised to £105) and VAT (threshold remains at £18).