Feeds

Gameplay slams online VAT loophole

Not fair

  • alert
  • submit to reddit

Reducing security risks from open source software

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

Seven Steps to Software Security

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.