The UK has now stopped the Isle of Man benefitting from the UK VAT system.
So what’s next for the Crown Dependencies and VAT? It seems very obvious that Low Value Consignment Relief, which is extensively abused in Guernsey and Jersey should be next to go. The saving to the UK will be at least as much, the cost to the islands in question much less.
There seems not reason not to do this now.
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Maybe the message has been conveyed to Jersey and Guernsey but it doesn’t suit the governments to shout about it like 0/10 (tactics)?
The Girrl
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Not consistent with what I get this end
Doesn’t LVCR exist because it simply isn’t worth HMRC’s time and effort to levy import vat on every single item that passes through the system. This is the reason the threshold exists.
The threshold could be under £10
It’s not a problem – the mail all comes in on one ship
Easy to collect…
I think your comments that the Isle of Man ceases to benefit from the UK VAT system are wholly inaccurate.
The changes only relate to the VAT revenue sharing arrangements.
The benefits of free trade etc. in respect of the VAT arrangements of course can continue to be enjoyed.
I for one hope that you can be successful in stopping the VAT abuse on low value consignment relief. It is totally untenable that businesses honestly paying their VAT (in my case in the Isle of Man funnily enough) can be undercut by what can only be termed the crooked activities of major retailers operating this loophole. The previous half hearted attempts at leaning on Jersey and Guernsey have succeded only in driving the operations further afield such as to Switzerland when what is really needed is a block on entry to the UK (or EU). For obvious reasons this needs sorting out before the UK General Election.