Online pricing

  snowy30 18:02 02 Mar 2006

I recently heard through the grapevine that online CD/DVD prices will match those you expect to see in the shops. Apparently, why CDs and DVDs are cheaper online is because they are shipped from jersey or some other country where VAT is not inclusive of its prices.

Is this right?

  Diodorus Siculus 18:16 02 Mar 2006

Partly - but I don't expect it too happen any time soon.

BBC NEWS | Business | Call to end CD sales loophole
click here

  jack 20:14 02 Mar 2006

Certain 'E-shops' are based in the Channel Isles and can ship goods below a certain value sans VAT.
If the order is largish and can be broken down into items below the threshold they will.
click here

  Stuartli 09:35 03 Mar 2006

That's why Tesco and others' online services for such items are based in the Channel Islands.

The islands are a VAT free region, hence the savings. Orders just need to be worth £18 or less to escape UK VAT being charged.

Similar principles regardiing excise duty apply to all the cheap booze you can buy from supermarkets, off-licences etc.

You almost certainly pay a lot less than your local pub landlord and similar operators for their supplies.

  spuds 12:36 03 Mar 2006

This is not just going to involve cd sales from the Channel Isles. There are consultations going on at present with various authorities, which will cover EU purchases as well, and the way duty is paid on that.

  Belatucadrus 13:05 03 Mar 2006

Also this isn't likely to affect companies like CD-Wow that source from outside the EU VAT zone and supply a lot of there stuff from Hong Kong.

  oresome 15:45 03 Mar 2006

Circumventing taxes on a small scale may be OK, but once the Tescos of this world get in on the act, Gordon's going to do his best to put a stop to it.

  Diemmess 18:24 03 Mar 2006

Have dealt with this one in the past
click here
My deal was ink and paper some time ago

  jakimo 21:34 04 Mar 2006

A recent proposal by Mr Brown (I cant find the link)stated that he was keeping a close look on channel isle vat. free imports,and that current importers would likely be allowed to continue zero rated goods (up to £18 limit). New importers should not expect the same concession.

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