VAT: Channel Islands

Treasury written question – answered on 13th July 2010.

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Photo of Sajid Javid Sajid Javid Conservative, Bromsgrove

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.

Photo of David Gauke David Gauke The Exchequer Secretary

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.

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