HMV, Woolies swerve VAT on in-store goods

HMV and Woolworths are both installing special kiosks in-store that allow consumers to purchase goods under 18 without VAT.

The vending areas allow consumers to order goods directly from the Channel Islands – a method usually reserved for websites.

Woolworths already has 40 ordering kiosks in its UK stores, whilst HMV is planning to install instore "HMV Delivers" kiosks in its 250 stores.

According to The Guardian:

‘HMV’s new terminals offer "free home delivery" not from the group’s London distribution centre, but from its base on the Channel Islands tax haven of Guernsey. The extra expense of postage is paid for many times over by avoiding VAT.’

HMV’s new kiosks continue the delivery process of its website, which already orders goods direct from the Channel Islands.