MCV/DEVELOP News, events, research and jobs from the games industry
HMV will close its Guernsey warehouse and now run its website from the UK. It follows the end of Low Value Consignment Relief (LVCR), which has allowed online retailers to sell goods tax-free into the UK. As of April 1st, there will be no tax advantage to having a warehouse …
Read More »Channel Islands lose VAT-loophole court challenge
Jersey and Guernsey has lost their judicial review of the UK Government’s decision to end Low Value Consignment Relief. Low Value Consignment Relief is a tax loophole which means online retailer that operate out of the Channel Islands – including The Hut Group, Play.com and Amazon – do not have …
Read More »ANALYSIS: Channel Island tax dodge
When Play.com took advantage of the Channel Island tax relief back in 1998, it changed UK online retailing overnight. Low-Value Consignment Relief (LVCR) meant that any goods sold from the Channel Islands under 18 didn’t have to pay VAT. That included DVDs, CDs and budget games. And with Play.com based …
Read More »Tax dodgers flee Channel Islands
Online entertainment retailers are preparing to leave the Channel Islands after the UK Government said it will close the VAT loophole next April. MCV understands online retail behemoths may move to Asia, Switzerland and even the US to avoid paying tax on CDs, DVDs and some games. For years, campaigners …
Read More »Indies call for VAT clampdown
Independent games retailers have urged the Government to make good on its promise to review the Channel Islands’ tax loophole. Plans outlined during the 2011 Budget last week include reducing the upper limit on VAT-free goods, publishing a report and holding a meeting in May to discuss whether to remove …
Read More »Retailers make VAT pledge
Retailers have adjusted the price of games following the VAT rise. With margins already tight, stores have passed on the increase to customers to maintain profit. GAME, Gamestation, HMV and Argos are among the High Street retailers which have raised prices, while online firms Amazon, Play and ShopTo have also added …
Read More »VAT increase sees games prices jump
Leading UK games retailer GAME has confirmed to MCV that it has increased the price on some of its products as a result of the VAT increase that came into effect in the UK overnight. However, the chain has pointed out to MCV that it still offers a market-leading price …
Read More »VAT rise arrives at UK retail
The High Street is bracing itself for a slowdown in sales this year due to the VAT increase. A study by the Centre for Retail Research, in association with online shopping group Kelkoo forecasts that consumers will spend an average of 324 less in 2011 because of the VAT increase. …
Read More »OPINION: The 2011 VAT rise
I don’t think anyone in the industry is kidding themselves as to the challenges retailers have faced in 2010. Every interview I’ve conducted of late starts with a dour acknowledgement of the pressures in the market. So I’m sure everyone appreciates the fears mounting at every level over January’s VAT …
Read More »Games prices frozen despite VAT hike
Publishers must lower the cost of games, retailers have warned – or they will cut back buying new stock when VAT rises in 2011. Buyers and store bosses are fearful that they’ll have to swallow next year’s 2.5 per cent tax rise in order to remain competitive – and want …
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