Feeds

HMV lines up a few VAT-free CDs and DVDs

How not to cannibalise your sales

Bridging the IT gap between rising business demands and ageing tools

HMV is planning to put kiosks into some of its stores to allow customers to order out-of-stock CDs and DVDs which will be fulfilled VAT-free from the Channel Islands.

Many online and mail order music services including Tesco and Amazon.co.uk already have warehouses in Jersey and Guernsey because EU law allows items with a value of less than £18 to be imported to the UK mainland without paying VAT.

But small mail order businesses and specialist music stores vehemently object to this practice because it puts them at a disadvantage against big suppliers.

A spokesman for HMV told the Reg: "We already do this in a couple of stores and the idea is to extend it to 20 or 30 but only for out-of-stock items."

Richard Allen, a former music industry professional, said: "This has had a huge impact on catalogue music specialists. It needs challenging in court but struggling shop owners can't afford the legal fees."

Allen believes there is already a provision within the EU low value consignment relief which would allow the UK government to disallow it if it is being used for evasion. He pointed to the example of Denmark which acted quickly when magazine companies began offering VAT-free subscriptions by sending the magazines from offshore.

A Treasury spokesperson said: "It is important to maintain a balance between minimising the compliance costs on parcel operators and importers, safeguarding the interests of small companies, and protecting tax revenue by preventing unfair exploitation.

"As with all taxes the Government will continue to keep this issue under review, taking account of the wider public interest, and will take action if appropriate."

The European Union debated changing VAT regulations to make them more suitable for the age of the internet in 2006 but no agreement was reached. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
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 ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
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
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.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.