VAT: Channel Islands

[TrueBlueTerrier]

VAT: Channel Islands
Treasury
Written answers and statements, 13 July 2010

Sajid Javid (Bromsgrove, Conservative)
To ask the Chancellor of the Exchequer if he will bring forward proposals to end the sale of goods worth less than £18 free of value added tax by companies based in the Channel Islands to customers in the UK.

Hansard source (Citation: HC Deb, 13 July 2010, c661W)

David Gauke (Exchequer Secretary, HM Treasury; South West Hertfordshire, Conservative)
The Government are actively reviewing the operation of the VAT relief on imports from outside the EU, known as Low Value Consignment Relief. In assessing the case for change, the Government will take into account the need to balance often conflicting considerations including the impact on consumers, UK businesses and Royal Mail and other parcel operators, as well as the overall fiscal position and the practicality and cost of enforcing any changes to the operation of the relief.

[TrueBlueTerrier]

This could have a huge impact on E-Fulfilment and therefore Royal Mail.

[Lounge Lizard]

David Gauke (Exchequer Secretary, HM Treasury; South West Hertfordshire, Conservative)
"The Government are actively reviewing the operation of the VAT relief on imports from outside the EU, known as Low Value Consignment Relief. In assessing the case for change, the Government will take into account the need to balance often conflicting considerations including the impact on consumers, UK businesses and Royal Mail and other parcel operators, as well as the overall fiscal position and the practicality and cost of enforcing any changes to the operation of the relief." Or, in a word, "Maybe"

[Lounge Lizard]

"including the impact on consumers, UK businesses and Royal Mail " - so what difference does it make to RM whether they come from Guernsey or Guildford ? We still deliver them.

[TrueBlueTerrier]

"including the impact on consumers, UK businesses and Royal Mail " - so what difference does it make to RM whether they come from Guernsey or Guildford ? We still deliver them.

If the price goes up because they add Vat people are less likely to purchase from them, and that means a reduction in traffic for us. So yes we will still deliver them but less of them.

[BELIAL]

Service

[Lounge Lizard]

"including the impact on consumers, UK businesses and Royal Mail " - so what difference does it make to RM whether they come from Guernsey or Guildford ? We still deliver them.

If the price goes up because they add Vat people are less likely to purchase from them, and that means a reduction in traffic for us. So yes we will still deliver them but less of them.

Like when VAT goes up from 17.5% to 20% within the UK there will be a massive reduction in packet traffic for us.

[pinstripe]

Like when VAT goes up from 17.5% to 20% within the UK there will be a massive reduction in packet traffic for us.

Not likely, everyone will be buying their stuff second hand off e-bay.