In our blog post on Thursday we spoke a bit about Low Value Consignment Relief (LVCR) and how it could soon change.
We explained it all in the post but to give you an ever so brief summary: LVCR is a tax relief that allows – or, ahem, has allowed, firms in the Channel Islands to export some goods exempt from VAT.
This means you could buy a DVD or CD from one of the retailers and find it a little cheaper than a UK retailer.
Lots of businesses – and the government too – think the tax relief is unfair and a long campaign to end it reached the High Court yesterday where a decision was finally made.
Well, we kept our beady little eyes on proceedings and we've just logged on to give you an update. And as planned, the tax relief on low-value items will be scrapped from April 1st, a court has ruled. It means as of April retailers that base themselves in the Channel Islands – Jersey and Guernsey – will no longer be able to avoid paying VAT on certain products.
As a retailer based in the UK, we support the move, which the government has been planning for some time.
It puts us on a level playing field with everyone else. Fair, no?