Feeds

Gameplay slams online VAT loophole

Not fair

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

gamesindustry.biz logo Online game retailer Gameplay.com has begun a campaign calling on the government to close a loophole in European tax laws which allows offshore companies to import cheap goods into the UK VAT-free.

Under current legislation, anything worth less than £18 can be imported free of VAT, a price bracket which covers CDs, DVDs and budget videogames - key elements of the catalogue of goods offered by retailers such as Gameplay.com.

This loophole gives an unfair advantage to offshore companies, according to Gameplay managing director Andy Mee - who points out that many British-based Internet companies are now moving their businesses to the Channel Islands in order to remain competitive, with the cost being measured in British jobs.

"All the British Government does however is blame Brussels," he told the Yorkshire Post today. "When I asked why VAT could not be charged on all imports, or even a small levy, I was told it would take too much administration. The support it claims to have for e-commerce simply isn't there."

One of the main e-tailers to benefit from the tax loophole is Play.com, which is able to undercut its rivals in the music, DVD and videogame markets significantly thanks to its VAT-free prices.

Gameplay, along with Yorkshire MEP David Bowe, is calling on the government to follow the example of Belgium and opt out of this element of the tax laws, thus equalising VAT charging across all types of imported products. © gamesindustry.biz

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.