End of Fulfilment

[shortport]

George Osbourne is to announce this week that the Uk government is to close completely the VAT loophole that our fulfilment industry exploits.The closure will take effect from the middle of next year.
If you thought unemployment was bad this year,wait till next.
No wonder play.com sold out already.
Isn't it about time our government encouraged some more aceptable industries in our island instead of ones that exploit tax loopholes.Every national newspaper you read these days seems to have some article about offshore tax havens.
We were never so hated when we had tourism and potatoes instead of overly complicated tax schemes for the rich and corrupt.

[Calimachon]

Such is life, as one door closes so another will open eventually!

Cali

[danrok]

Yes, they should be doing far more, to establish other industries.  Unfortunately, the States of Jersey normally takes the too little, too late route in just about everything.

But, you can't blame them for this LVCR industry, it was all started by private individuals, who were always operating within the law, and taking advantage of a law which was not under Jersey's control.

The fact is that all countries use taxation to encourage, or discourage certain activities.  For example, the UK provides tax credits to the movie industry.

I don't believe that LVCR is/was anywhere near as damaging as its critics would claim.  The money UK shoppers saved on DVDs, etc. they would have simply spent elsewhere within the UK economy.

[boatyboy]

I agree with you danrok, just to add a bit more meat to the bone the £18.00 no tax, started when flowers were sent to the UK. It was decided that if the tax was collected on the fresh flowers this would result in many case's of the flowers not being so fresh when the person supposed to pay was caught up with. Far to much trouble, and labour intensive.

Where I think there may be a problem is that yes the money would be spent on dvds in Jersey but as Play.com was sold for £45 million, and there are other companies also trading -  this tells us it is / was a serious industry (good for Jersey) but very hurtfull to thousands of small stand alone market traders and outlets in the UK who would have paid tax.

The UK borrowed £14 Billion in September to stay afloat, it is turning over even small stones now to get income in and keep people employed.

BB

[Scott_the_Scot]

I read that LVCR was not about flowers, but is often confused with the Pre-paid VAT scheme.

More research here:

http://www.taxresearch.org.uk/Blog/2011/09/22/the-channel-island-and-low-value-consignment-relief-getting-the-facts-straight/

Scott

[boatyboy]

Excellent update Scott, my information came from memory from a newspaper article I read some time back and to me at least made logical sense.

Your research gives a clearer and stronger explanation, if only Jersey's Government where as keen to be as transparent.

BB

[danrok]

I think Play.com was sold for £25m, this is not so much due to the probable end of LVCR.

A few years ago the company could have been sold for far more than that, I'd imagine.  They must have previously turned over £100s of millions in a year, when it was at its peak.

But, I think the days of selling cheap discs have always been numbered anyhow, because DVD sales are going the same way as CD sales.

Illegal downloading has killed sales of music CDs, and now many people have internet connections which can download standard definition DVD movies in a reasonable time.  That just leaves HD movies, for now.

There are also plenty of services which allow you to stream movies legally at a cost.

Much of that £25m paid would have been for the name, and goodwill factor.  The name is known by pretty much every UK resident, and also by many Europeans, it's about as well know as Bergerac!

[newmac]

Did anyone else hear the Chamber of Commerce saying that they had been contacted about pushing to get the value of goods imported free from GST to be lowered as a way of retaliating!!! It was on radio Jersey around 5pm today

I'm surprised they can't see that it would not bother any UK or other off Island business but would affect a lot of people in the Island,

[danrok]

I think the main reason why many islanders are shopping online, is because so many Jersey shops are over-charging.

They make various excuses as to why their prices are higher, none of which add up.

For example, by blaming freight costs.  That doesn't add up, because when you buy online you are still paying the shipping cost - even if it is included in the price.

[Calimachon]

One example of overcharging in my mind is

iPhone 4 S  in Jersey handset only without a sim £998

http://www.jtglobal.com/Jersey/Personal/Mobile/Handsets-and-tariffs/View-all-handsets/Apple/iPhone-4S/?stariff=6

you pay £699 online with free delivery but I bet they won't deliver to the Channel Islands because of some deal.  I know you can't purchase an iPhone from the iPhone store here in Jersey I checked.

http://store.apple.com/uk/browse/home/shop_iphone/family/iphone/iphone4s

How can they justify such a hike in costs.  I know why because they can, and if they can they will.

I will probably go for an android anyway, not sure if the battery life is sufficient at present in the iPhone 4S.  I need Siri though.  My mobile acts as my brain these days.  Nice to just pop out of the door and the phone reminds you to get the cat food or to buy some milk.  *giggle*, sad state of affairs I know but very real.

Cali   Surfing the net and looking for iPad 2 now, or should I get the Motorola Xoom.  So much information to plough through and so much choice but with so many instructional .pdf's to look through I surely need a tablet of some kind.  I don't think I would use them as ebooks.  I like to actually read a real book even though the pages spring back and annoy me sometimes.

[Bachus]

It might be the end of fulfillment on the one hand but might end up being storage and delivery on the other hand . If a Swiss company can still sell to the UK without adding VAT then perhaps there is a role for the local workers after all. The positioning is good and the storage already available with a decent postal system already in place. Anyone for Toblerone?

[danrok]

One example of overcharging in my mind is

iPhone 4 S  in Jersey handset only without a sim £998

http://www.jtglobal.com/Jersey/Personal/Mobile/Handsets-and-tariffs/View-all-handsets/Apple/iPhone-4S/?stariff=6

you pay £699 online with free delivery but I bet they won't deliver to the Channel Islands because of some deal.  I know you can't purchase an iPhone from the iPhone store here in Jersey I checked.

http://store.apple.com/uk/browse/home/shop_iphone/family/iphone/iphone4s

How can they justify such a hike in costs.  I know why because they can, and if they can they will.

I will probably go for an android anyway, not sure if the battery life is sufficient at present in the iPhone 4S.  I need Siri though.  My mobile acts as my brain these days.  Nice to just pop out of the door and the phone reminds you to get the cat food or to buy some milk.  *giggle*, sad state of affairs I know but very real.

Cali   Surfing the net and looking for iPad 2 now, or should I get the Motorola Xoom.  So much information to plough through and so much choice but with so many instructional .pdf's to look through I surely need a tablet of some kind.  I don't think I would use them as ebooks.  I like to actually read a real book even though the pages spring back and annoy me sometimes.

You can buy "sim free" smartphones on Amazon.  If they're stocked and sold by Amazon, the VAT will be deducted when you pay.

Amazon seems not to stock Apple products.  But they do stock plenty of Android phones.

This is arguably the best Android phone: http://www.amazon.co.uk/Samsung-I9100-Galaxy-Free-Smartphone/dp/B004QTBQ2C/ref=sr_1_2?s=electronics&ie=UTF8&qid=1320928542&sr=1-2

The hardware is much the same as the iPhone 4S, i.e. dual-core processor.

[Calimachon]

You can buy "sim free" smartphones on Amazon.  If they're stocked and sold by Amazon, the VAT will be deducted when you pay.

Amazon seems not to stock Apple products.  But they do stock plenty of Android phones.

This is arguably the best Android phone: http://www.amazon.co.uk/Samsung-I9100-Galaxy-Free-Smartphone/dp/B004QTBQ2C/ref=sr_1_2?s=electronics&ie=UTF8&qid=1320928542&sr=1-2

The hardware is much the same as the iPhone 4S, i.e. dual-core processor.

Danrok you have just confirmed what my internet friends have been telling for for a while.  The best way to go is with a Samsung.  Hmmm may just go down that road if I can get good belt and braces approach to mobile and smarthphone safety.

Thanks a lot!

Cali

[Rob Kent]

Danrok you have just confirmed what my internet friends have been telling for for a while.  The best way to go is with a Samsung. 

Change 'Samsung' to 'Android', which is the operating system.

HTC alos make good Android phones. I use a Desire S but that is a bit old now. The main point is that Android phones now offer equivalent functionality to iPhone while being priced considerably lower.

[en830]

Heard from a source in the Fulfilment industry today that they have been preparing for this for sometime. The distribution will move either to the UK or to Switzerland, but the financing will remain in Jersey. So I guess not all doom and gloom.