Channel Islands Vat scam closed

Ever wondered when you purchased something of comparatively low value from Amazon or even online from Tesco, the packages and paperwork came from a Jersey or Guernsey based company?

They have been exploiting a loophole that effectively allows them to sell goods without Vat, 20% lower than their competitors. Large retailers used to sell direct from the Channel Islands and when this practice was choked off back in 2006, they started using agencies instead.

If your company has bought some cheaper ink cartridges for example, from Amazon and the transaction was valued at £18, the chances are this transaction would be treated as two £9 sales. both of which would come from Amazon's Jersey based agent, Indigo Starfish.

The limit for Vat free sales is £15, which is why your purchase might be booked as two smallers amounts.

The Government has just closed this Vat scam which costs over £100 million of lost revenue a year and has angered other retailers for a long while but sadly this will cause job losses in the Channel Islands, not easily taken up elsewhere.