THE UK government must act to stop Channel Islands fulfilment companies costing the UK Treasury millions of pounds in lost tax revenue, according to a Labour MP.
The MP for Burton, Janet Dean, has accused the islands’ authorities of misleading the UK Treasury over fulfilment – sending out packages of goods ordered over the internet without charging VAT.
She says that the European Commission has begun a formal investigation into the situation, and that companies selling mail-order CDs, DVDs, health food and health supplements through the Channel Islands were costing UK firms money.
‘I am left wondering what possible justification there can be for giving a huge exemption from value added tax to those products,’ said Mrs Dean during an adjournment debate on Low-Value Consignment relief on Tuesday.
