Apple iTunes UK to use tax loophole?

Posted on Monday, April 17 2006 @ 0:06 CEST by Thomas De Maesschalck
ARS Technica claims Apple will soon take advantage of a tax loophole in the UK to provide cheaper music downloads:
Over the past two years Tesco, Asda, Britannia, HMV, Amazon and Woolworths have all set up delivery operations in the Channel Islands to exploit a law which allows retailers outside the European Union to sell goods worth less than [GBP17, which is roughly US$30] to UK consumers free from VAT.

After careful (instant?) consideration, Apple decided it sounded good to them:

Apple confirmed that it is looking at setting up a similar operation on Guernsey. What this means to the UK digital media consumer is that they are going to save 18% on purchases, which works out to around US$0.23 per song.
However, the U.K. government is already planning to close the tax loophole. More details over here.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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