EC urged to act on Channel Islands’ CD trade

The European Commission is being urged to act against the British government over the trade in VAT-free CDs and DVDs from Jersey and Guernsey (Channel Islands). A group of music retailers threatens legal action against the Treasury to try to end the shipments, which exploit a European Union exemption from VAT for imports into the EU worth up to £18.

The (UK) Forum of Private Business says that 'The Channel Islands VAT loophole is seriously undermining business on the high street and beyond. It allows large retailers to achieve an unfair 17.5% price advantage by selling huge amounts of products through their Channel Island-based websites into the UK without charging VAT'

Forum of Private Business: Campaigns: Offshore VAT loophole http://www.fpb.org/czw-T3Fo-NrlRw.html

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