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Posted Apr 16, 2006 03:03 by Pete C.
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After observing other UK based companies exploit a tax loophole, Apple could now be interested in following suit. Throughout the United Kingdom there is a system called "VAT" (Value Added Tax) that means British consumers have to pay an extra cost with every good they buy. But if the delivery of these goods is from a location in the Channel Islands, in addition to the item being worth less than £17 ($30), it becomes free of VAT. With this possibly in mind, Apple recently expressed that they are looking at setting up an operation on the island of Guernsey. Could this mean long demanded price drops on iTunes UK will now take place? By doing something like this, it could cut the costs of iTunes UK goods by nearly 18% We'll see soon enough I guess! |
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» Woo
Around 50p ($0.8) rather than 73p($1.3) for a song? Bargain! Hope the UK customers get the savings rather than just apple.
Around 50p ($0.8) rather than 73p($1.3) for a song? Bargain! Hope the UK customers get the savings rather than just apple.
» Really possible?
I thought this loophole was because of customs cant charge on mail imports into the UK. I know of no digital download companies who use this loophole.
A digital download isnt an import as it doesnt go through customs thus would be applicable to EU charges. Same way EU customers who buy US goods (from USA) get charged VAT if they download it.
I thought this loophole was because of customs cant charge on mail imports into the UK. I know of no digital download companies who use this loophole.
A digital download isnt an import as it doesnt go through customs thus would be applicable to EU charges. Same way EU customers who buy US goods (from USA) get charged VAT if they download it.
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