UK Budget has little impact on internet retail industry
Thursday 24th March 2011, 3:00PM GMT.
UK Chancellor George Osborne delivering his budget speech. Picture: PA Wire
THE Island’s internet retail industry survived yesterday’s UK Budget although its long-term future remains in doubt.
Coalition chancellor George Osborne reduced the threshold under which goods shipped into the UK from Jersey escape VAT from £18 to £15 – which will come into force in November – but he also said the UK government would work with the European Union to avoid the ‘exploitation’ of the tax relief that makes shipping goods such as CDs and contact lenses from the Channel Island so attractive.
Mr Osborne added that he would ‘return to the issue of the Low Value Consignment Relief [the rule that exempts items imported into the EU from VAT] threshold in next year’s Budget if discussions with the European Commission do not produce a workable solution to the problem of exploitation, with a view to reducing it further.’
The response of Jersey’s internet retail industry to the UK Budget has been guarded.
• See Thursday’s JEP for the response
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Mr Osborne added that he would ‘return to the issue of the Low Value Consignment Relief [the rule that exempts items imported into the EU from VAT] threshold in next year’s Budget if discussions with the European Commission do not produce a workable solution to the problem of exploitation, with a view to reducing it further.’
It’s days are numbered though!
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The journey of a CD:
1. China
2. Southampton via container ship
3. Ferry to Jersey via Portsmouth
4. Warehouse in Jersey…………. time for a rest…
5. Ferry from Jersey to Portsmouth, CD has Deja-vu
6. Delivery to mainland customer
Seems like a bit of a pointless industry really?
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Nothing new about this, Annie.
In the heyday of tourism all manner of rubbish used to be shipped in to fill the shelves of the Gorey (and town)trinket stores in order to be taken back to the mainland.
Was Jersey Fudge really made in Jersey? It always looked suspiciously similar to Devon/Cornish/Isle of Wight/Isle of Man and, heaven forbid, Guernsey Fudge to me.
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i cant be leave this story didn’t even rate the front page. just shows what they really think of internet industry in jersey the term easy come easy go comes to mind. but hey you will always have the finance industry
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Tell me exactly how are contact lenses sold under £18? They cost a small fortune.
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Annie Du Feu (2) Seems like a bit of a pointless industry really?
Annie, a nice bit of research, but there is worse!
1. CD in warehouse in London where it is picked and selected.
2. Air craft to Jersey in morning.
3. Processed and packed in Jersey …. no time for a rest…
4 Ferry from Jersey to Portsmouth, in evening
5. Delivery to mainland customer
All with a first class carbon footprint. How pointless is that?
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Mark and Annie
1. Loopholes in law mean that Jersey is a good place to register companies and keep money without being taxed.
2. Planeloads and boatloads of people come here to look after the companies and the money.
3. Even more people have to come and service their needs.
4. Boatloads of building materials shipped in to house them.
5. People start leaving as the island becomes less attractive.
All with a first class carbon footprint, bigger than that of the CD.
Another pointless industry!
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This has all happened before. The marmalade scam in Guernsey at the turn of the Century where Glasgow based Keillers opened a marmalade factory to avoid the sugar tax. It employed 150 people. Does anyone mourn its loss now ? No. I understand that Indiogo Starfish/Lighthouse has its roots in Glasgow. I’m sure they’ll be gone soon as well. Those who ignore history are bound to repeat it…
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“UK Budget has little impact on internet retail industry”
Eh ? ! This headline is ludicrous. Its blown it out of the water! Osborne clearly intends to reduce LVCR to zero for CI and that will no doubt be done with derogations on various items. I’m telling you, its over….
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Remember this article in this paper in 2007 ?
New EU probe into fulfilment
Read more: http://www.thisisjersey.com/?s=lvcr&searchsubmit=Search#ixzz1JRatbTSs
Looks like they were right…
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