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Tesco Online (Jersey)
I was in the process of buying a DVD online and at the checkout it gave me the option of buying it from Tesco Jersey instead and saving the VAT. How can this be?
It's under �18 (the threshold apparently) and the VAT saving covers the normal postage if I was to buy it from the normal Tesco online 'shop'.
It's a discounted DVD (�5.86) but would I be charged the VAT on the RRP(�22.99) if HM customs want to get involved?
Answers
No best answer has yet been selected by jon1968. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.This doesn't answer the question, but there's a similar thing with amazon now - amazon jersey is one of the marketplace sellers, and you get the item cheaper than with amazon.
I think what you actually pay for the item is what matters for customs, not what the RRP is. Maybe someone can verify or otherwise...
Jersey have imposed restrictions on amazon and tesco doing this, they won't be able to do it forever, Jersey thinks it is unfair that they use their jammy tax rules but don't actually contribute anything to the island's economy, or employ many Jersey inhabitants. The treasury also loses a lot of money from taxes via this loophole. see this bbc link to the stories.
Play.com is based in Jersey, and this is why they also have such cheap prices. They won't be subject to the new restrictions because they are based on the island, and stock and store their goods there before selling. Play.com also don't charge extra for post and packaging - bonus!
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